Manufacturers and Distributors: Is it Time to Upgrade Your ERP Software?

Is-It-Time-for-an-ERP-Software-UpgradeLast month we discussed the need for manufacturers and distributors to have upgraded ERP software in order to manage their manufacturing and distribution operations effectively. As we stated last month, without an adequate ERP solution, companies stand to lose efficiency, incur unnecessary costs, and waste valuable time in the manufacturing and distribution process. Now that you understand the importance of relying on upgraded software, we’d like to focus on how to decide whether or not it’s time to upgrade your solution.

Recent research has shown significant value in manufacturers relying on updated and modern ERP solutions. When ERP software becomes outdated, the value of the solution drops significantly and – if manufacturers aren’t careful – can wreak havoc on their efficiency and productivity levels. Making the decision to upgrade your ERP software, however, is not one to be taken lightly. After all, ERP software is a significant investment requiring a lot of time and effort. Upgrading your solution before it’s time could cost you more than you’re willing to pay.

If you do find that your ERP solution has become outdated, you have three options: modify, expand, or replace. While modifying your existing solution or expanding its capabilities certainly has potential, we believe that in order to gain true efficiency you need to replace your system completely. We know this is not a decision to make lightly. ERP software, after all, is a fairly substantial investment and the benefits and challenges of moving to a new system need to be carefully weighed. ERP implementations involve a lot of work, time, and training. If your company is not willing to put in the adequate effort, you’re probably better off modifying or expanding your current solution.

Deciding whether or not to replace your manufacturing or distribution ERP software can be a difficult decision. In fact, according to a recent survey performed by MPI, 60% of the manufacturers and distributors queried said their current ERP system was lacking in the functionality they need to stay competitive. However, only 12% of those surveyed were planning on replacing their ERP system within the next 12 months. So the question begs to be asked: why are so many manufacturers and distributors settling with outdated and ineffective systems?

The answer? Many are unaware of how to make the proper decision when it comes to ERP replacement.

If your company is struggling to decide whether or not it’s time to replace your ERP software, we’d like to help. We’ve created a quick list to help you determine if a new ERP solution is the right option for you. If you identify with any of the following statements, it’s time to upgrade to a new solution:

  • Your company’s growth can be contributed mainly to acquisition and the integration of disparate systems will interfere with ongoing operations.
  • Your company has created new strategies that are no longer supported by your legacy ERP system.
  • You cannot adequately meet your customers’ needs or demands with your current solution.
  • You’ve realized your ERP software never had the correct scope or vertical focus to begin with, and no amount of modifications or “fixes” can correct the solution.
  • Your company has grown significantly (think multiple locations, regions, currencies, languages or global supply chains).

Do you identity with any of the above statements? If so, we can help you move to an innovative, modern-day ERP software solution to relieve all of your technology concerns. Infor SyteLine is an alternative to Epicor, Microsoft AX and Microsoft Dynamics and is the solution of choice for over 5,000 manufacturers around the world. Find out what makes it so special by setting up a software consultation today.

Leave a comment