Most manufacturers know that an ERP manufacturing system offers many benefits. However, the many challenges that arise during the course of business can make using an ERP effectively difficult. Here are some of the most common challenges, with suggestions on how to approach each.

Challenges Manufacturers Face with an ERP Manufacturing System

So many manufacturers struggle with common challenges listed below that they are often lumped under the heading of ‘digital transformation’ challenges. Yet many of these go beyond digital transformation and point towards larger events and situations that can make maximizing your current ERP manufacturing system difficult.

Replacing Legacy ERPs

Many manufacturers invested in an ERP years ago. Some ERPs “play well” with others, but many do not, relying instead on expensive licenses to extend the basic functionality or integrate with common platforms such as Salesforce. As a manufacturing business grows, the ERP it invested in 10, 20 years ago may not be right for its needs today. 

While some manufacturers have opted to extend legacy ERPs with microservices and cloud native apps, others find a complete rip and replace of their legacy system the only option. Such a change required a good ERP manufacturing consultant, one who knows both the platform and the industry, and can help you find the right fit for your needs. With proper requirements gathering and the right consultant, you may find the process easier than you thought.

Mergers and Acquisitions

Mergers and acquisitions bring their own set of challenges to manufacturers. Each company in a merger or acquisition may have its own ERP. Which should you choose as the system of record? Can they be integrated? If not, should your firm switch to one, or completely replace them with a new ERP manufacturing system? 

These are just some of the questions that can arise regarding ERPs with mergers and acquisitions. Standardizing into one ERP system ensures 360-degree visibility into all processes and maximizes data resources throughout the newly combined companies.

“Right Shoring” or a Blended On-Shore and Off-Shore Model

“Right shoring” or determining the best fit between onshore and offshore resources is often a delicate balancing act for manufacturers. Many find that hosting data centers offshore, for example, reduces costs without sacrificing quality. However, using offshore and onshore resources means potentially shifting from on-premise to cloud ERP to ensure teams in all locations access and use the same data. Companies considering an offshore component should consider their ERP needs as part of the overall strategy and assessment.

IT Infrastructure Costs and Limitations

As your company grows, its IT needs change. You’ve probably invested in new software, hardware, and cloud-based platforms to support new initiatives and plans. You may also work with a mix of employees and managed service providers, system integrators, and consultants to maintain your current IT infrastructure. 

Shifting to cloud ERP may change your current IT landscape. With a new cloud ERP system, you may not need special hardware or servers to run the ERP. That may call for reduced staff, too. It’s vital to assess both benefits and drawbacks associated with any ERP changes, and to make decisions based on maximum cost savings balanced with efficiency gains.

Improving Collaboration

Many manufacturers include improved collaboration among their goals. Yet it can be challenging for teams to collaborate, especially if they work in different locations. With a cloud-based ERP, collaboration can be enhanced. Team accessing the data can work from the same shared set of facts, improving collaboration and communication.

Overcoming Challenges with Cloud ERP Manufacturing Systems 

Rapid growth, mergers and acquisitions, legacy systems, onshore and offshore requirements, and IT infrastructure needs can change a company’s ERP requirements. It’s important to work with an ERP consultant who understands manufacturing and can guide you through the process of updating or changing your systems. No one ERP fits all, and the right consultant will help you find the right fit to overcome your challenges.

PositiveVision: SYSPRO and Sage 300 ERP Experts

PositiveVision provides comprehensive business management software solutions for small to mid-sized manufacturing and distribution companies. Since 2002, we have been dedicated to helping businesses streamline processes, reduce inefficiencies, and grow revenue by leveraging advanced technologies such as SYSPRO ERP, Sage 300 ERP, and various business intelligence applications. Our team of experts offers tailored support and exceptional customer service, ensuring that clients achieve their operational goals and maintain a competitive edge in their industries. Contact us for more information.

Robert Baran

Robert Baran is the founder and President of PositiveVision. He has worked in a variety of positions including system analyst, computer consultant and programmer, project manager, and division manager.