‘Even the best systems eventually become outdated or misaligned with your business needs. Recognizing the signs that indicate itistime to update your ERP system can save you from unexpected high costs, and operational disruptions. In this blog post, we’ll explore the key indications that you ERP needs updating and how to address it.
1) Not Enough Support
Immediate response from IT support are crucial when you encounter an ERP software problem. If your are not getting expedited support from your ERP vendor, you might want to consider reviewing other systems before things go from bad to worse. But please note: new or updated is never synonymous with ‘perfection’.
2) Lack of Necessary Functionality (or Too Many Bolt-ons)
2) Lack of Necessary Functionality (or Too Many Bolt-ons)
Your ERP should support your business processes efficiently. If you find yourself buying bolt-ons or relying on third-party applications to fill functional gaps, your current ERP may not be meeting your business needs. While these add-ons may shrink the functionality gap, they increase the total cost of ERP ownership and lack of perfect integration can disrupt coordination between functions. An integrated system is essential for streamlined operations, and inversely reliance on multiple bolt-ons can lead to inefficiencies and increased complexity.
3) Can Your ERP Grow with Your Organization
3) Can Your ERP Grow with Your Organization
As your organization grows and becomes more complex, will your ERP vendor keep pace? Due to a volatile industry, not all vendors can or will support your organization forever.
4) Stockouts, Shipping Delays, Customer Loss
4) Stockouts, Shipping Delays, Customer Loss
Growing organizations often face growing pains. For example: inventory management. If you are experiencing frequent stockouts, shipping delays, or losing customers due to poor service it is time to question if your current ERP is still meeting your needs. Effective inventory management is crucial for customer satisfaction and operational efficiency, and an outdated ERP can severely exacerbate these challenges.
5) Excessive Manual Processes
5) Excessive Manual Processes
When you invest in ERP software, you are expecting a single, end-to-end integrated solution. The last thing you want is to continue to rely heavily on manual entries. If you find that too many processes are manual, it implies that your ERP system is not fully integrated. This leads to errors, inefficiencies, and wasted time, all of which are costly.
6) Poor User Experience
6) Poor User Experience
No one loves spending hours trying to figure out how to interpret a simple report or inquiry.
If your employees find your ERP system is cumbersome and difficult to use, it can lead to low adoption rates, silos of data (spread sheets) and high training costs. Poor user experience will result in resistance to using the system and decreased productivity. Your ERP should be intuitive and user-friendly and allow employees to perform their tasks efficiently.
7) Incompatibility with New Technologies
7) Incompatibility with New Technologies
The business technology landscape is constantly evolving, with new tools and platforms emerging regularly. If your current ERP cannot accommodate new technologies (such as advanced analytics, IoT, AI, ML, or mobile platforms), you are missing out on opportunities to improve operations. An ERP system that is incompatible with modern technology can place your business at a competitive disadvantage.
Don't wait until these issues escalate—proactively assess your ERP system to ensure it is still relevant with your business. If you identify any of these signs, it might be time to consider an upgrade or a new solution. Even though there are hundreds of ERP systems that claim they are the best.