Let’s get to the point– you are searching for ERP Software for a manufacturing business that would help you modernize your business systems. Enterprise Resource Planning or ERP is the core of any organization. Yet, 55% to 75% of all ERP projects fail to deliver objectives. Various reasons exist, but are they avoidable? Yes, they are avoidable — if you choose the right ERP software implementation partner. However, finding the best ERP software for a manufacturing business could take weeks if not months. Longer projects could derail your organizational goals, forcing you to search for alternatives within 8-10 months of implementation. Chaotic — isn’t it?

But, you can prevent this from happening to your ERP plans.

Setting the correct expectations with the ERP software provider will decide the success or failure of your manufacturing business. Starting with a data-backed ERP software vendor selection criteria will save you from disastrous consequences, especially when your ERP system is slated to be the core of your modernization strategy. To help you avoid ERP selection accidents in your manufacturing business, here are the do’s and don’ts you should know.

Dos and Don’ts in an ERP Selection

Let’s find out the dos and don’ts in an ERP selection process for manufacturing.

Do: Define your vision for ERP selection

Let’s look at two scenarios. First, you are looking for ERP software for the first time. Second, you already have an ERP system, but searching for a new option to meet the growing demands of your organization, especially in IT, Finance, Marketing, and Sales.

In both cases, it’s time to upgrade. So, let’s make it easy for you.

Do you have a clear answer to the question – “Why does your business need ERP software today?”

Saying YES is a good start. It takes up to 30 weeks to find the right ERP software for manufacturing. In most cases, failing to set the right business expectations at the start of the ERP selection process results in disastrous outcomes. For example, your organization is forced to work with a broken ERP system, only because the stakeholders made a hasty decision to pick an ERP software without adequate research and consulting. How to avoid this accident?

Establish a clear vision for ERP selection. Window-shopping for manufacturing ERP software without a clear vision of your short and long-term business requirements could prolong the selection process often extending into months.

Do: Find out where ERP systems fail

NetSuite said manufacturing companies are the No.1 users of ERP software. Nearly 50% of all companies searching for ERP software belong to the manufacturing industry, followed by distributors, constructors, and services. Now, these companies use ERP for accounting followed by CRM for sales and marketing, technology, and services. Do you know how many of these systems fail?

55% to 75% of all ERP projects fail to deliver objectives. Reasons exist, but are they avoidable? Yes, they are avoidable — if you choose the right ERP software implementation partner.

According to Opkey’s State of ERP testing report, 59% of business leaders and IT managers plan to purchase an industry-specific ERP solution in the next 36 months. Integration testing, data migration, validation, and compliance management emerged as the biggest challenges for stakeholders during a migration or new implementation.

Do: Create an ERP demo checklist

The selection process to find the best ERP software for manufacturing businesses boils down to the circumstances and the technical expertise of the users. A staff-vetted purpose document, including the stakeholders from cross-functional teams, will ensure your modernization goals are on track. Once the ERP software is integrated into the manufacturing department, your success will depend on how well people and technology adapt to the new system. Wrong ERP selection could lead to replaying the ERP buying cycle or paying a third-party service provider to save your day! Both, costly and unsustainable if modernization is your ultimate goal. How to avoid this accident?

Include an ERP vendor demo checklist in your software selection process. Modernizing manufacturing business processes with ERP technology at the core can only be accomplished if your technology vendor fully understands your requirements and environment — cloud, on-premise, or hybrid.

Pro tip: Ask for a demo that explains the functionality of each feature, and provides a detailed overview of one vendor’s product performs against the others in the market. It’s best to have a layered ERP software buying approach that allows you to discuss the functionalities based on pre-demo, during, and post-demo conversations.

Do: Create a leader’s voice among your stakeholders

Depending on the size of the manufacturing firm, you could have one or more stakeholders in the buying journey. Key stakeholders in the ERP buying process include the CEO, CIO, and the non-C-level executive team. In large-sized manufacturing firms, the Head of Finance and employees also have a share of voice in ERP software selection. This ensures key stakeholders can provide valuable insights and feedback. If you are transitioning to a new ERP software system, pick a leader from your stakeholder group. It will help you steer clear of the “old ways of doing things” mindset and accelerate the process of selection, deployment, and use.

Don’t: Go with your gut feeling

Buying an ERP system is an investment decision– a strategic milestone for your organization. Leaving this to gut feeling will devastate your operations and future growth. If the shortlisted ERPs don’t promise an incremental increase in business value, you should carefully weigh your options. One of these options is to pick a trusted ERP implementation partner.

If you need an ERP for finance to embrace continuous accounting, here’s an informative resource from our IntentTech resources section.

Do: Choose the best ERP implementation partner. Always!

ERP implementation is the most important step in the modernization journey of a manufacturing firm. Whether you are implementing a new ERP for the first time, adding new features to an existing one, or replacing the old system, an implementation partner will assist you in troubleshooting complex issues, whenever they arise. An ERP implementation partner will ensure you are on top of the change management strategy, providing adequate resources to navigate the shifting environment. Process-based training for everyone, including executives, managers, employees, and end-users should be the number one condition for choosing the ERP implementation partner.

Don’t: Overlook financial contingencies

When we fail to plan, we plan to fail!

With ERP for manufacturing, this is the golden truth. Right from the start, negotiate for a good ERP vendor contract that absorbs financial contingencies or reorg circumstances. Hiring ERP subject matter experts (SMEs) before your ERP project begins ensures you don’t face headwinds during difficult times. That’s why, CIOs and CFOs must work together as a team during the manufacturing ERP software buying cycle.

Do: Ask for help, including an ERP upgrade or an add-on specialist

When manufacturing operations scale, ERP software users could require additional support models to manage the post go-live requirements. In most cases, it is normal to face delays in projects due to the non-availability of ERP specialists. The ERP software vendor and their implementation partners should be able to give references to senior ERP architects and their customers. You should have an in-house knowledge management team to gather intel from other ERP clients about their experiences during and after the project.

Don’t: Be rigid with the end date of the ERP projects

When millions are invested, finishing the project on time should be the number one priority for the vendor. 36% of ERP projects exceed the timeline, especially when the systems need a major upgrade or accommodate a spin-off of the existing system. Manufacturing ERP software vendors may seldom commit to finishing a project within the committed time frame. However, a committed ERP implementation partner with SMEs and system architects can assist in reducing the project timeline.

ERP implementation partners such as Forsys, provide a full range of ERP implementation, data engineering, and integration services. The benefits of choosing the best manufacturing ERP implementation partner are:

• Assured digital transformation and modernization
• Better compliance
• Cost saving with flexibility and scaling options
• Centralized data management and data security
• Real-time reporting and monitoring
• Customization
• Improved quality control
• Stronger technology integrations to include next-gen capabilities

A reliable ERP implementation partner like Forsys offers deep expertise and timely support throughout your ERP journey. Looking to find more reasons to find the right ERP partner for your business? Click here to learn more.