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12 signs your business needs to replace its ERP system

July 22, 2018 Article 1 min read
Doug Hockenbrocht Monti Piccioni
Your ERP system needs to evolve in response to market pressures and business changes. System limitations can affect ROI, efficiency, performance, and your overall business strategy. These 12 signs suggest it's time to assess the situation.
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To respond to market pressures, organizations have to constantly enhance the way they use ERP systems to continue to add value to the business. This could mean significant upgrades, enhancements, acquiring new solutions, or retiring old ones. A limited ERP system can affect ROI, optimal performance, and the overall business strategy of the company.

A limited ERP system can affect ROI, optimal performance, and the overall business strategy of the company.

Here are several key signs that indicate it may be time to assess your current situation.

  1. Inventory and costing inaccuracy
    Frequent wasteful physical inventory counts and unexplainable adjustments; unclear margin and profitability
  2. Mergers and acquisitions
    Unable to integrate new plants or entities
  3. Business growth and diversification
    Capabilities of current software will not support additional requirements arising from new types of customers or products
  4. International expansion
    Currency, language, and new regulatory reporting requirements
  5. Lack of timely information
    Data from current system(s) is disintegrated and is days-old or batched
  6. Material traceability
    Cannot effectively trace raw materials, WIP, or finished goods
  7. EDI
    Difficulty meeting new or changing customer requirements
  8. High reliance on Excel
    Lack of integration, collaboration, and efficiency
  9. Experienced talent loss
    ERP champion or power users have left the organization
  10. ERP vendor viability
    Current system is no longer supported or functions are limited
  11. Software modifications
    Making upgrades is expensive or impossible due to modifications
  12. Neglected ERP maintenance or obsolescence
    High costs to upgrade

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