Is your manufacturing ERP ready for replacement?

Manufacturing enterprise resource planning platforms do not last forever. Despite their industrial-grade components, these mission-critical solutions fade over time. System lifespans vary depending on the vendor, according to IT Toolbox. Some manufacturing ERP products hold up for more than a decade, while others decline within five years of implementation. However, the signs of system degradation are universal. Manufacturing organizations with longstanding legacy solutions must familiarize themselves with these troubling software symptoms. Here are some of those obvious indicators:

Diminished supply chain visibility
ERP solutions, at their core, are meant to facilitate operational visibility, lending stakeholders at all levels insight into the activities that unfold in the back office, out on the shop floor and inside the facilities of key third-party collaborators. When manufacturing ERP systems cease to provide this information or offer inaccurate numbers, change could be necessary. However, users and production leaders rarely recognize this problem when logged into the system.

This symptom of ERP deterioration often comes to light in the boardroom when executives request total product or job costs, according to Panorama Consulting Solutions. In the event that production staff cannot compile this data or uncover potentially flawed figures, it is likely that the software from which they originated is to blame and requires updating or replacement.

Lack of vendor support
Virtually all manufacturing ERP platforms require consistent system updates to remain viable. This necessitates long-term vendor support as software makers are ultimately responsible for coding these improved components. In the case of cloud-based or Software-as-a-Service installations, vendors also install these updates. However, few technology firms support their products in perpetuity, especially today. Enterprises across all sectors continue to demand bleeding-edge backend technology, leading third-party systems providers to reiterate at an accelerated pace and leave older systems behind, The St. Louis Business Journal reported. When this unfolds, IT teams have two choices: adopt new software or continue forward with unsupported technology. 

Sadly, many choose the latter approach to avoid new system implementation and the costs that accompany it. In reality, keeping outdated ERP solutions in place even after vendor support ends often leads to increased costs as system performance drops dramatically without consistent or proper updates and patches. With this in mind, manufacturing organizations that find themselves with unsupported ERP platforms should embrace replacement and get new, fully-functioning solutions.

Missing industry-standard features
The manufacturing industry is one of the most technologically advanced sectors in existence. Companies in the space continue to push their production limits, leveraging advanced software and hardware to streamline workflows, more effectively meet customer needs and increase revenues. The use of business intelligence among manufacturers doubled from 2016 to 2017, according to research from the software provider Plex. Additionally, an increasingly large number of producers embraced connected supply chain technology in 2017. This year, the push for innovation continues as businesses ratchet up internet of things implementations, invest in more automated equipment and look into augmented reality setups, the Association of Equipment Manufacturers found.

With these developments unfolding, manufacturers must at least consider adoption to keep pace with competitors and this requires taking a look at legacy ERP software. Most of these solutions, even those released within the last decade, do not have the core features needed to support the above technology. Some are not even capable of facilitating workflows featuring now-industry-standard technology, ERP Focus reported. Producers maintaining systems without such components or those needed to implement cutting-edge technology that will soon define the manufacturing space must seriously consider replacement.

The presence of extensive workarounds
When everyday users encounter systems that impede them rather than offer assistance, most create workarounds that allow them to complete critical tasks despite technological interference. Ideally, an ERP system should negate the need for such shortcuts, lending users the complement of tools they need to execute without logging off or introducing supporting platforms. When solutions reach the tail-ends of their lifespans, this often ceases to be the case, forcing workers to create and leverage workarounds, according to St. Louis Business Journal. This is not a viable long-term answer to ERP-created workflow problems as these circumvention methods actually transform into standard processes over time, turning ERP platforms into unused money pits.

Manufacturing firms with numerous workarounds in place should definitely consider implementing new ERP technology – all parties involved, including the chief financial officer, will be appreciative.

Embracing ERP renewal
Businesses in the manufacturing industry staring down these problems might be reluctant to launch full-on system reboots due to the cost of implementation. In the end, this upfront expense, which consumed less than 0.5 percent of the annual revenues for almost half of all the companies that completed ERP projects in 2017, according to Panorama, will certainly make less of a budgetary impact than the costs that come with keeping untenable backend technology in place.   

Manufacturing organizations interested in replacing legacy ERP software with a more modern alternative should connect with Accent Software today. As a certified Microsoft Business Solutions partner, we provide vendor-vetted Microsoft Dynamics NAV implementation services, giving manufacturers the power to bolster their operations with one of the most advanced and reliable ERP solutions on the market. 

Contact us today to learn more about our offerings.