Businesses typically pursue enterprise resource planning and system implementation to streamline their backend processes and ultimately achieve optimal efficiency. In fact, more than half of the organizations that embarked on the ERP adoption journey in 2018 did so in anticipation of major efficiency improvements, according to research from Panorama Consulting Solutions. While many adopters achieve these results — approximately 85% of those that sought out efficiency gains in 2018 achieved them — a fair number end up putting into place solutions that do not trim the operational fat, so to speak. Some even contribute to internal disorder. 

Manufacturing businesses literally cannot afford to maintain ERP systems that do not promote operational efficiency. The lean manufacturing methodology is king and those in the space that cannot keep their production processes and back-office functions under control risk losing ground to competitors that can. But what can manufacturers with existing ERP platforms do to ensure their software promotes efficiency? Luckily, there are some tried-and-true methodologies for achieving this important goal, some ranging from quick tweaks to more forceful, transformative changes. Here are three such strategies and some information about what manufacturing firms that embrace them can expect.

1. Business process redefinition

As mentioned above, businesses across virtually all sectors, including manufacturing, see ERP technology as the ultimate driver of operational efficiency. This is true to some extent — when effectively implemented and managed, ERP platforms can streamline all back-office and shop floor functions. However, these solutions cannot catalyze efficiency gains in isolation. Organizations must pair them with compatible processes. Unfortunately, it is not uncommon for ERP adopters to put these tools into place thinking they can do all the work. The reality is, companies must evolve functionally as they install these information technology assets, per Panorama. 

Manufacturing firms that find themselves lacking sufficient operational efficiency despite the introduction of ERP technology should take a look at the businesses processes accompanying their systems and determine whether they mesh with their new IT assets. If not, chances are significant workflow adjustments are necessary. What exactly does this mean? For instance, if sourcing teams are leveraging old paper-based strategies for bill of material assembly and review as opposed to managing such functions through the ERP, system efficiency suffers as personnel either input the necessary information late after multiple rounds of review or simply forget to enter it in at all. Here, business process change is necessary, as the ERP solution itself cannot function unless sourcing staff input the required BOM data.

2. End user re-engagement

The theoretical case study covered in the previous section is a good illustration of one essential ERP truth: The technology is nothing without the user. Why? Human workers generate the information that flows through ERP solutions and ultimately make them valuable. Without accurate, up-to-the-minute data, ERP platforms have little purpose. For this reason, organizations navigating ERP implementation typically devote considerable resources to making sure end users embrace the technology, which is a challenge. Analysts for Deloitte learned that more than 80% of adopters consider mass resistance to change — the end ultimate result of lacking user engagement — the biggest roadblock to ERP adoption success.

Manufacturers, even those that effectively get employees onboard initially, can experience user attrition over time and see ERP efficiency decline as a consequence. There are, of course, strategies that firms in the space can use to re-engage their workers and regain system functionality, starting with training. Most businesses understand that ERP solutions and the workflows in which they exist change with time. Reconnecting with users and communicating these adjustments, however small, encourages them to log back in with more consistency and use the technology to its potential. Targeted system problem-solving can have the same effect. When manufacturers address the widespread platform issues that cause employees to employ workarounds, end users return to ERP systems with renewed vigor. And with data flowing freely, ERP platforms that once showed major declines in efficiency come back to life. 

3. ERP replacement

The reality is that ERP technology does not last forever. Most offerings on the market, even the highest-performing solutions, come with definitive lifespans. At some point, the essential functions and features that once drove efficiency fade due to computational decay or sun-setting customer support agreements. This leaves only one option: replacement. An estimated 42% of the businesses that launched and closed out ERP implementation initiatives did so out of the need for system replacement, according to Panorama.

Now, the idea of swapping existing ERP software for something new can seem daunting to manufacturers, particularly those with legacy systems that have been around for a decade or more. In actuality, executing a switch of this kind is easier than most might expect, so long as the IT stakeholders involved stick to established ERP selection best practices and find solution providers that can perform the technical work involved. 

Is your manufacturing organization ready to embark on ERP replacement and in need of a reliable solution partner with experience in the space? Consider connecting with Accent Software. As a certified Microsoft Business Solutions partner, we provide vendor-vetted Microsoft Dynamics NAV implementation services, giving manufacturers of all sizes the ability to implement impactful ERP solutions that can maximize operational efficiency and lay the groundwork for sustainable stability and growth in the era of lean manufacturing.

Contact us today to learn more about our proven products and services.