How can you tell you’ve outgrown your old manufacturing ERP system? Chances are, if you’ve implemented ERP for your manufacturing business, you have a system that works relatively well. It gets the job done, more or less. The “or less” part can become increasingly problematic as older systems age, however. Here are seven signs that you’ve outgrown old the ERP.
1) Quality suffers
ERP in manufacturing should give you very fine-grained control over manufacturing processes and material inputs. If a customer returns an order, you should be able to go to your ERP and quickly gain a firm understanding of what went wrong. That way, you can recall any other orders that were shipped with the same same defect or intervene with a supplier that contributed to the problem. For example, if you manufacture a food item, and you discover that a particular lot contains a harmful chemical, your ERP needs to give you complete information on where the chemical came from and who got shipments of the tainted product. Older ERPs can struggle with this level of control and insight.
2) You’re spending a lot to keep it going
Legacy ERPs are like old cars. You love them, but they take a lot of care and feeding. If you notice your ERP management and admin budget climbing every year, even if you’re not adding new functionality, that’s a sign you need to replace it.
3) You need specialized people on staff just for ERP
If you have to keep people on staff because they are the only ones who can administer the ERP and get data out of it for reporting, you need a more modern solution.
4) Inventory is holding things up, tying up cash or both
Modern ERPs like Acumatica give you many nuanced controls over inventory management, including tracking of lot and serial numbers, expiration dates, transaction reason codes, inventory bin locations and item class hierarchy.
5) Integration is clunky or nonexistent
Is your old ERP linked to your accounting system, HR or CRM solutions? If it isn’t, that’s already a tip off that you can do better. Acumatica comes with simple, fast integration with related systems. These enable more efficient business management overall. Alternatively, if managing such integrations is a cumbersome, expensive proposition, it’s time to make a change.
6) Reporting is a chore
How hard is it to generate timely, in-depth reports with your legacy ERP? If reporting is time-consuming or incomplete, you should know that you’re missing out on insights that can make your manufacturing business more competitive and profitable.
7) Security is weak, costly or both
Is your data secure? Do you feel confident you can protect your digital assets from Denial of Service (DoS) attacks? If you’re not sure, or you are being told you will have to spend a lot of money to get secure, you might do better with a modern ERP. A cloud-based ERP like Acumatica is hosted in a secure cloud data center. This doesn’t make it 100% bulletproof—nothing is—but this architecture takes a huge security burden off of your plate.
We have worked with many manufacturing companies on ERP upgrades. If you are curious about how a new ERP could help your business run better, we should talk. Or, to arrange a demo of Acumatica, please visit our website.
Additional Manufacturing ERP Resources
Manufacturing Challenges—How Acumatica Can Help
The Advantage of True Cloud Manufacturing