The right tools can make all the difference for manufacturers looking to streamline operations and improve efficiency. Enterprise Resource Planning (ERP) systems stand as the pivotal technology-driven choice to achieve those goals. Despite their widespread adoption and proven benefits, however, ERP systems still face their fair share of misconceptions that are simply not true.
Let’s debunk some of the most common myths and explore the true advantages of ERP systems for better business processes.
Myth 1. ERP Systems Use Outdated Technology
Sometimes people perceive ERPs as being outdated, even though many modern ERP solutions have evolved significantly. The reality is that current ERPs leverage business intelligence technologies to offer more flexible, efficient, and user-friendly platforms.
ERP vendors like Frontier continue to invest in their technology and enhance their software to address these concerns. ERPs now feature more intuitive user interfaces. While on-premise software is still available, cloud-hosted options often provide better accessibility, scalability, and security. These advancements keep ERP systems relevant and valuable by improving usability, reducing complexity, and offering greater adaptability to meet your evolving business needs.
Myth 2. ERPs are Only for Large Corporations
Another prevailing misconception is that ERP software is exclusively reserved for large corporations with expansive budgets and complex operations. In reality, ERP solutions come in various shapes and sizes, catering to the needs of businesses of all proportions. No matter your company size, tailored ERPs are available to suit your specific requirements and budget constraints.
You won’t have to break the bank with a Frontier ERP system designed with your business in mind.
ERP systems like Frontier ERP are both flexible and scalable. They allow you to start with the needed core system features and expand as you and your budget grows. Cloud-based or cloud-hosted ERPs, in particular, remove the need for upfront investments in hardware and infrastructure. As a result, ERP systems have become more accessible for SMEs with smaller budgets.
Myth 3. ERP Systems are Too Expensive
Cost concerns often deter businesses from investing in ERP software solutions. They believe the benefits do not justify the expenditure. However, this myth fails to consider the long-term ROI and increased efficiencies ERPs offer.
While there are some initial expenditures in an ERP system, it’s essential to view these as an investment rather than a mere expense. Many ERP vendors offer flexible pricing models including optional add-on modules and cloud-based ERP software. These enable you to spread costs over time. Be aware that the opportunity cost of not implementing an ERP system can far outweigh the investment, as your company continues to struggle with inefficiencies, errors, and missed sales.
Myth 4. ERP System Implementation is Lengthy and Disruptive
Another common misconception surrounding manufacturing ERP software is that implementation is a time-consuming and disruptive process. While it’s true that ERP implementation requires careful planning and execution, advancements in technology and implementation methodologies have streamlined the process significantly.
Today, many ERP system vendors offer rapid deployment options and pre-configured templates tailored to specific industries, reducing the time required for implementation. Software vendors can be enlisted to handle data transfers, maintenance, and updates to reduce the burden on your in-house IT resources. With careful planning and a trusted partner, you can seamlessly transition to an ERP with minimal disruption to your operations.
Myth 5. ERPs are Just For Accounting or Manufacturing
It’s no lie that ERP systems offer robust financial management and manufacturing functionalities. However, ERPs provide a comprehensive solution for managing all operational aspects of your company. ERP software administers a variety of core business processes like shop floor control, procurement, sales order management, and product configuration.
Businesses from all industries benefit from the holistic approach offered by an ERP system. By maintaining a centralized database and single source of truth, ERPs provide companies with greater visibility, control, and efficiency across their entire business ecosystem.
Myth 6. Customization is Always Necessary
Not true. Modern manufacturing ERP systems like Frontier ERP offer extensive configurability out of the box. While data and application integrations may be required, extensive programming and customization are not always necessary. Many businesses can achieve their requirements through configuration alone, minimizing the need for costly and complex adjustments.
Custom programming solutions that force a system to work where it wasn’t designed to are inefficient and expensive. ERP vendors understand that no two businesses are alike, from configuration options to integrations with third-party applications. Manufacturers that choose ERP software created specifically for their industry receive the most benefits from the system’s features. However, some minor adjustments may need to be made on the vendor’s end to meet each customer’s requirements.
Frontier ERP’s user-friendly interface virtually walks you through the system, eliminating manual errors and making processing a snap!
Myth 7. ERP Systems Are Difficult to Use
While some ERP systems can be complex, ERP vendors like Frontier prioritize user experience and usability. The best ERP systems for manufacturing feature intuitive interfaces with clear layouts, streamlined workflows, and helpful prompts. They often include role-based access and personalized dashboards that help team members use the ERP system effectively.
An easy-to-use ERP system also minimizes the need for extensive training. However, training and support resources are also available to help users become more proficient with the software.
Myth 8. ERP Software Will Solve All Problems
Implementing an ERP system is not a magic bullet that will instantly solve all issues with your manufacturing operations. Yes, manufacturing ERP systems can significantly improve efficiency and productivity. However, implementing an ERP system still requires careful planning, training, and ongoing maintenance to realize its full potential. You might need to adapt your existing processes to embrace best practices that fully leverage the capabilities of your new ERP software.
The Frontier ERP Advantage
Despite the misconceptions, ERP systems remain a key instrument for manufacturers to enhance operational efficiency. As the leading ERP system for custom manufacturers, Frontier uses an intuitive user interface and the latest technology to help companies grow.
Frontier’s innovative features and flexibility cater to medium and large companies, typically involved in discrete manufacturing or assembly. Since each company is unique, We offer both out-of-the-box and customized ERP solutions for a variety of industries. Frontier ERP also includes scalable features and built-in CPQ software with a powerful product configurator to streamline processes.
Implementing an ERP system is a major task for any manufacturer. It requires a clear project management plan for the most rapid ERP deployment with the least disruption. Our COMPASS methodology guarantees successful ERP rollout and support for discrete manufacturing companies.
While an ERP is not a magic bullet that will solve all of your company’s issues, our dedicated, expert team members work hand-in-hand to help you maximize Frontier’s features for full benefits.
Conclusion
ERP systems have come a long way since their inception, yet misconceptions persist regarding their operation, implementation, cost, flexibility, and usefulness. Ignore the myths and take the time to do your research when selecting manufacturing ERP software. In this way, you can make informed decisions and harness the full potential of an ERP system to drive company performance.
It’s crucial to recognize that ERPs are not a one-size-fits-all solution. They are tools that can adapt to the unique needs of each business. With the right ERP company and implementation plan, you can unlock new opportunities for business growth and success.
To learn more about Frontier’s manufacturing ERP system and how it can transform your operations, or schedule a demo, contact us today.
FAQs
What is an ERP system?
ERP stands for Enterprise Resource Planning. An ERP system is software that integrates business processes into a single system to streamline operations and improve efficiency. These typically include finance, HR, manufacturing, supply chain, and product configurations.
What are the 3 common types of ERP?
The three common types of ERP systems are on-premises, cloud-based, and hybrid ERPs. On-premises ERPs are installed on a company’s servers. Cloud-based ERPs are hosted on the vendor’s servers and accessed online. Hybrid ERPs combine both types to offer more flexibility.
Are ERPs still relevant?
Yes, ERP systems are still highly relevant. They continue to evolve with technological advancements such as cloud computing, artificial intelligence, and machine learning. As companies rely on data-driven decision-making, ERPs remain essential tools for integrating and managing business processes.
What should I look for in an ERP vendor?
When evaluating an ERP vendor, look for industry experience and a track record of successful implementations in your industry. Ensure they offer scalable solutions that can grow with your business and provide robust customer support and training resources. Assess the flexibility and customization options of their ERP system to meet your specific needs. Lastly, consider their pricing model to ensure it aligns with your budget and provides good value for your investment.
Why do ERP implementations fail?
ERP implementations fail at a significant rate, with various studies indicating failure rates ranging from 50% to 75%. Failures often stem from issues such as inadequate planning, insufficient training, and lack of stakeholder engagement. Therefore comprehensive preparation and ongoing support throughout the ERP implementation process is necessary to avoid failure.
