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Five Warning Signs your ERP System is Hurting your Business

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Enterprise resource planning (ERP) systems are supposed to improve an organization’s performance from the plant floor to the top floor, keeping the business competitive in an ever-changing market. Yet, many ERP vendors are holding businesses back rather than enhancing them. How do you know if your ERP system is hindering or helping you? Beware of these warning signs that your ERP system is killing your business.

1.     Your ERP system can’t integrate mission-critical business data. If your data is difficult to access, you can’t analyze it to make strategic business decisions. In addition, quality management, EDI, customer orders and all the other aspects of your business become siloed. These environments lead to inefficiency as efforts are duplicated with multiple versions of the truth. Your data then becomes compromised across the organization, and reporting is disconnected.  

2.     Changes to the system are expensive and waste time. When a software vendor issues incomplete sporadic releases, your business rarely gets the new features you need, when you need them. If you do choose to upgrade, it requires significant planning time from skilled resources, likely business disruptions and quite a bit of cost. And, if all of the features needed aren’t in that release, you are looking at further costly upgrades down the road. If you don’t upgrade, the company is stuck on outdated software with outdated capabilities.  

3.     High maintenance fees. Rising ERP maintenance fees make it hard to predict your IT budget. With new upgrades and other changes that are out of your control, you’re required to pay maintenance on an ever-growing list of things you can’t adequately forecast. Plus, if the system gets too complex, additional trainings or technical headcount push costs even higher.  

4.     Accessing the data on-the-go is difficult. Your customers aren’t all in one place, and that means you’re not always in one place either. It’s imperative that you can access data at the touch of a button while traveling. Smartphones are half of the solution, but if your ERP vendor doesn’t provide an associated app that lets you see all your data in real time, you’re not getting the full picture of your business when you need it.  

5.     Globalization is too difficult. Many ERP vendors don’t support the same version of the system across international borders, forcing you to have different interfaces and versions of the truth from one country to the next. Reporting of data has to be done manually, while your competitors are already miles ahead of you.

These are just some of the warning signs to watch out for when evaluating the effectiveness of your ERP system. However, not all ERP vendors are like this. The Plex Manufacturing Cloud is an online solution, accessible by users anywhere, at any time. No expensive hardware upgrades, no exorbitant maintenance fees, and no data limitations. Learn about the rest of the warning signs and what you can do about it in the “Ten Warning Signs Your ERP System is Killing Your Business” white paper.

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