Avoid these common ERP mistakes to boost effectiveness

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Manufacturing and warehousing businesses that are upgrading their current enterprise resource planning software or adding such a system for the first time want to get a platform up and running at full capacity in the shortest time possible. Because ERP can be a significant cost for many companies, beginning the path to return on investment as soon as possible makes sense. However, organizations need to temper their eagerness with the knowledge that moving to quickly or ignoring steps in the process can harm short-term implementation timelines as well as long-term usefulness.

With a balance of quick implementation and addressing all concerns in mind, here are three common ERP installation mistakes that can be avoided with a little planning:

  1. Don't underestimate training and education: Although it's more of a concern for organizations beginning to use ERP for the first time, there can be apprehension about adding a new system or switching to a different one. Managers and executives need to make sure they are providing overviews of how ERP will work in broad strokes and demonstrating how the platform will make employee tasks more manageable as well as provide benefits for the entire company. This kind of information should be provided along with technical education on specific components. CIO.com recommends providing additional training to a select group of employees who can then aid other staff with issues as they crop up.
  2. Don't rush into selecting a system: Businesses that want to take advantage of ERP shouldn't jump at the first system they find. Determining organizational needs and finding a solution that will best meet those requirements is far more important than saving a few weeks or in the installation process by quickly choosing a system. For manufacturing and warehousing companies that have a wide variety of operational needs, modular ERP such as Microsoft Dynamics NAV can help provide the best fit. By selecting specific components that provide needed features, organizations can craft the most useful ERP system possible. Enterprise Apps Today points out one of the biggest blunders a company can make is selecting a system that is too generic.
  3. Keep options open: An all-in-one, monolithic ERP system can cause problems down the line when the time comes to upgrade or add onto a system. Selecting a more agile system can reduce downtimes for updates and allow for the easier addition of functionality as finances become available and a company grows.

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.