The thought of replacing or upgrading an enterprise resource planning (ERP) system is daunting for most manufacturers. It might seem easier to stick with what you’re currently doing. But, there are several reasons why this is a death sentence for your business. Find out the five reasons to replace your ERP.
1. Obsolete technology
Many manufacturers are stuck dealing with inefficient technology and infrastructure on the plant floor, and it’s affecting their bottom line. IT personnel are relegated to 24/7 maintenance of the legacy system and are always fighting fires, never allowing your company to strategically plan for the future.
2. Lack of features
Legacy systems require numerous bolt-on solutions in order to function, and these many systems don’t always speak well to each other. You need an ERP system with an integrated manufacturing execution system (MES), quality management, traceability and more. A single version of the truth for every employee, from the plant floor to the top floor, ensures that everyone is making decisions based off accurate, real-time data.
3. Maintenance cost
It’s inevitable. By the time you spend countless time and dollars upgrading your legacy ERP system, there will no doubt be another upgrade just around the corner. Your company is stuck in ‘revision prison’ and suffers from downtime and unhappy customers, neither of which bodes well for the long-term success of your business.
4. Lack of support
Some manufacturers may choose to hobble along with a previous version of their ERP system, thinking they are saving money in the process. However, the ERP provider will soon begin to discontinue support for previous versions, leaving you with several expensive options. You could take their offer to upgrade to the latest platform, but as soon as you finally upgrade your outdated system, it will be time for more maintenance costs, reduced vendor support and yet another upgrade. It’s a vicious cycle.
5. Inability to scale
Many ERP vendors limit the amount of licenses included in the initial ERP sale in order to keep the entry cost down. These limited licenses may work initially, but as growth occurs, companies need more licenses, driving legacy ERP costs up quickly. Or, users end up begging to share logins which leads to two problems. First, if the ERP vendor finds out about shared licenses via an audit, they will fine you with a non-compliance penalty. Second, the inability to know which user completed a specific action quickly leads to a lack of accountability, spiraling into inefficient processes and inaccurate data. Either way – you lose.
Don’t despair. There is a way out of the legacy ERP depths. Manufacturers with version-less software and an unlimited subscriber model are the choice of modern manufacturers. The Plex Manufacturing Cloud is the first and only ERP system purpose-built for manufacturers. Integrated MES, quality, traceability, financials and more are a given, and employees have access to one single version of the truth from any internet-enabled device at any time.
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