The Disadvantages of ERP

ERP (Enterprise Resource Planning) is a powerful tool for streamlining operations and bringing organizations together. However, it is important to look at ERP objectively.

Everyone talks about the advantages of ERP systems, but what are the cons? What do you need to consider before taking the plunge with an implementation?

Cost

Naysayers of ERP usually bring up the price of a system first, particularly for small firms. Because ERPs are sophisticated tools meant to support the day-to-day functions of nearly every aspect of business, the cost of the software and the implementation can get pricey.

To find the most affordable solution that meets your organization’s needs, it is most cost-effective to work with a trusted consultant. As a one-stop shop, Datix can support you no matter what your software requirements are. Whether its ERP, CRM, hosting, integration, or disaster recovery, Datix has your back.

Results Not Guaranteed

If you are incorporating a new ERP system into your company, there is no guarantee that it will improve your business. Research from Gartner suggests that 55-75% of ERP projects either fail or don’t meet their intended objectives. Those who are already shy about the cost of ERP systems may use the fact that there is no guarantee of success as an excuse not to pull the trigger on making a purchase.

Yes, some ERP projects fail. And yes, buying the software doesn’t instantly transform businesses. An ERP is a tool, and as a tool, it is only effective when implemented thoughtfully with the right preparation, selecting the right ERP for your specific organization, aligning it with your business processes, and training your team in how to maximize it are key to the success or failure of an implementation.

You should be aware of the ERP failure rates because they showcase the stakes involved. To give yourself the best chance of success with an ERP implementation, it is critical to find the right consultant to guide you through the process. With 25 years’ experience, Datix will find the best ERP solution for your organization and support you every step of the way.

Industry-Specific Capabilities Vary

ERP systems vary widely, and every system isn’t necessarily designed with your specific industry in mind. Software is meant to make your business processes simpler, but if it can’t do the things that you want it to do, then it’s not going to be beneficial.

You might think that choosing an ERP from a major vendor would ensure that it has the capabilities essential to your industry, but this is not always the case.

For manufacturers, popular vendors like Acumatica or SAP may not be the best choice. Their systems have limited manufacturing capabilities, particularly for MTO (Make to Order) and ETO (Engineer to Order). Epicor® has more manufacturing capabilities, but its shop floor and MES (Manufacturing Execution System) interfaces are difficult to use. While a consultant may try to sell you on a platform by saying that you can customize the ERP to have the functionality you need, customizations tend to break and be costly over time.

If you want an ERP system, choose one that was designed for your industry. Discrete and process manufacturers can look to CloudSuite Industrial (CSI) by Infor for a comprehensive system.

CSI contains the manufacturing capabilities organizations are looking for, including exceptional inventory and vendor management. You gain real-time data visibility for key areas like job costing. Its shop floor interface is easy to use, and the system can handle ETO, MTO, CTO (Configure to Order) and mixed mode orders.

CSI is designed for manufacturers, but if you need to personalize your system further, you can. Infor built CSI for configurations so you can tailor your software without customizing it. This means you get the functionality you need and don’t need to worry about it breaking when you upgrade.  

For Infor CloudSuite consulting, look to the team at Datix. Our experts take the time to understand your challenges and competitive advantage so we can ensure that you receive a tailored solution that will maximize your outcomes.

Wrap Up

An ERP system has the potential to transform your business by streamlining efficiency, accuracy, communication, and data transparency. As we discussed, however, that potential doesn’t necessarily  lead to guaranteed results. To avoid an ERP failure that wastes both time and money, it’s critical to work with an ERP consultant who will keep you on track. After implementing thousands of solutions, our team at Datix knows what it takes to execute an ERP success. Talk to our experts to hear what the right ERP could do for your organization.

Want more ERP horror stories? Read The 7 Deadly Sins of ERP Projects

About Datix

With over two decades in the industry, Datix is the ERP consultant of choice for manufacturers and distributors. We believe in “being the best with the best” and look for partners who match our commitment to solving real issues and doing what it takes. Our in-depth analysis of our clients and their business needs allows us to maximize their software investments to the fullest.

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