Businesses in the manufacturing and fabrication industries want to have an enterprise resource planning software in place that is flexible and is easily modified, not only during the initial implementation process but during regular, ongoing use as well. The issue for many companies is that a majority of ERP systems involve long lead times and significant costs when customization comes into play. In addition, efforts to change a platform after it's been configured and installed lead to even longer delays and higher financial obligations. For companies that expect to develop and change as they continue operations, these limitations can cause headaches.
As business and human resources site CIPD points out, continuing customization holds its own set of problems. The more that a system changes from the base model produced by a vendor of a static, all-in-one platform, the more likely that issues with compliance and updates will occur. Organizations are then put in the unenviable position of having to switch to an entirely new ERP solution, incurring more financial and time costs as employees adjust.
Businesses that want to avoid this vicious cycle should consider a different approach to ERP: a modular system such as Microsoft Dynamics NAV. With a strong software background supported by a variety of different components that are easily integrated into operations, companies have far more control over the structure and functionality of their own ERP system. Research from Aberdeen Group shows that most businesses in the manufacturing field currently use more than one such platform to meet all their needs – a costly and inefficient solution. By using a modular system, organizations can get what they want out of ERP without having costly customizations or being forced to make a large-scale change when a major update is needed.
Learn how to define your ERP strategy by downloading the white paper entitled "ERP in Manufacturing: Defining the ERP Strategy" from the DMS website today.