9 Signs It’s Time For a New ERP System

ERP upgrade

Does your current ERP system struggle to keep pace with the needs of your organization? As your company grows and adapts to new challenges, the tools you use must also evolve to meet market demands. That includes your ERP software. But how do you know when it’s time for a new ERP system?

In this blog post, we’ll explore critical factors that indicate that it’s time to upgrade or replace your ERP. You will also learn what to look for in a new ERP system and vendor to support your company’s growth and continued success.

Inside ERP Software

Enterprise Resource Planning (ERP) is multitasking software that manages and integrates all your core business processes in one place. In contrast to conventional planning systems, ERP operates from a centralized, shared database for all departments. Businesses therefore benefit from well-informed decision-making capabilities and operational efficiency.

Amidst the rise of new technologies, the concept of ERP retains its relevance and value in today’s business environment. ERP systems persist in delivering substantial advantages by optimizing operations, enhancing efficiency, and enabling better business strategy development.

9 Indicators You Need a New ERP System (or to Upgrade)

Deciding to upgrade or purchase a new ERP system is an important decision that impacts your company’s processes and bottom line. It is essential to thoroughly review your current business operations to identify bottlenecks, trouble areas, and where there’s room for improvement.

Keep in mind that your current ERP provider may have released an upgraded version. Since it’s typically less costly to upgrade than replace your ERP, this is an important consideration. If your ERP provider does not provide regular updates, or their most current version would not meet your business needs, it is time to look further afield.

Do any of the following apply to your manufacturing company’s software and operating systems today?

1. Inefficient Functionality

Some ERP software only addresses company production and operations. Using different software applications for finance, quoting and ordering, and product configuration can lead to inefficient operations. A new ERP that offers a fully integrated, industry-specific package will increase your efficiency.

2. Limited Customization

Every business is unique, and your ERP should reflect that. This is especially true for those in the custom manufacturing industry. ERP systems need flexibility without costly custom programming, even for small changes. Consider a new ERP system if your software must be ‘tweaked’ to work properly or if you can’t generate custom reports.

3. Lack of Scalability

Companies adapt to changing market conditions. Your existing ERP system should be scalable as well. If it isn’t, that’s a red flag. Scalable software grows with you during increased transaction volume, additional users, additional facilities, or new market expansion.

4. Outdated Technology Stack

Slow response times, frequent crashes, or system downtime can indicate that your ERP is struggling. Technology that is outdated or no longer compatible with other software can be a huge problem for manufacturers. ERP systems that cannot communicate with suppliers, customers, or internal systems are detrimental to operations. Consider future-proofing your business with a new ERP system.

new ERP system, frustrated man on computer

The lack of automated processes and hard-to-use interfaces are two signs that you are ready for a new ERP system.

5. Inefficient Processes

Using manual workarounds or third-party applications for quotes, orders, or production scheduling leads to wasted time and resources. If your company relies on these methods for business processes, you need the process automation features a new ERP offers.

6. Limited Integration

Seamless data integration with your ERP system is critical for operations. Utilizing outdated ERP systems can lead to corrupt data, redundant manual data entry, and difficulty accessing information across departments.

7. Poor User Experience

If your employees have difficulty using your ERP system, it can negatively impact productivity. This can also decrease their willingness to use the system, ultimately affecting your business performance.

8. Insufficient Reporting and Analytics

Detailed reporting and analytics allow companies to make data-driven decisions. You may not be receiving an accurate picture of your operations with an ERP system that doesn’t integrate access to business intelligence reporting tools, including third-party data.

9. Low ROI

The point of implementing ERP software is to realize operational efficiency and cost savings. If you find that your ERP’s maintenance, support, and customization costs are not offset by the streamlined processes throughout your operation, it may be time for a new ERP system.

Frontier is the best new ERP system solution for many industries!

Look For Key ERP System Features

We’ve identified some clear signs that indicate it’s time for a new ERP system. But what should you look for when choosing a new ERP? When evaluating systems, it’s important to consider features that address your organization’s strategic and operations plans.

Overall Functionality

Assess the ERP system’s core functionalities and modules against your business requirements. Ensure that your ERP selection includes essential functions specific to your company. These may include quoting and ordering, finance, production scheduling, and product configurations. Consider Configure, Price, Quote (CPQ) software that is built into the ERP system for the best functionality.

Customization Abilities

Opt for a new ERP system that has extensive configurations and customization options for your industry right out of the box. This reduces the need for costly custom development and ensures the software aligns perfectly with your organization’s workflows.

technology stack

Frontier ERP is a completely scalable system that is offered as a cloud-based ERP solution.


Choose an ERP system that can scale with your business growth. It should accommodate increasing transaction volumes, additional users, new sites, and more data without significant disruptions or performance issues. Cloud-hosted ERP systems provide easy access, scalability, and seamless integration with other cloud services.

Modern Technology Stack

Select a new ERP system built on a modern technology stack. Choose one that includes the latest programming languages, frameworks, and infrastructure, to ensure optimal performance, scalability, and compatibility with future software updates.

Integration Capabilities

Ensure the ERP system seamlessly integrates with your existing software applications and data transfer streams. Integration capabilities are crucial for data consistency and workflow efficiency.

User Interface and Experience (UI/UX)

A user-friendly interface is essential for company-wide adoption and productivity. Evaluate the new ERP system’s UI/UX to ensure it is intuitive, easy to navigate, and requires minimal training for users.

Robust Reporting and Analytics

Ensure the ERP system includes the capacity to generate robust reports and analyze data concerning customer preferences, favored configurations, sales patterns, and pricing tactics. Leveraging this data-centric methodology empowers businesses to make informed decisions and pinpoint avenues for enhancement. Not only are they useful for performance measurement, but they also provide audit trails to meet regulatory standards.

Realistic and Attainable ROI

Consider the total cost of ownership over the new ERP system’s lifecycle, including licensing fees, implementation costs, customization fees, ongoing maintenance, and support expenses. Ensure that the cost aligns with your budgetary constraints and anticipated ROI.

Choosing the Right ERP Vendor

Picking the right ERP vendor is just as important as choosing the new ERP system. Do your research and evaluate each candidate thoroughly since it is the future of your company at stake. Some things to review include:

Vendor Reputation and Track Record: Look for a vendor with a proven track record of successful ERP implementations and long-term customer satisfaction. Ask for references from other businesses in your industry.

Data Security and Compliance: Data security is paramount when selecting a new ERP system. Ensure that the software vendor follows industry best practices for data encryption, access controls, and compliance with relevant regulations.

Training and Implementation Services: Evaluate the vendor’s implementation plans to ensure a smooth transition to the new ERP system. Our proven Compass Methodology provides a detailed plan for the successful implementation of Frontier ERP. Adequate training and support during and after implementation are critical for user adoption and system success.

Support and Maintenance: Consider the vendor’s support services, including response times, availability of technical support, and ongoing maintenance updates. A reliable support system is essential for resolving issues promptly and ensuring system uptime.

Business Goals: Review their future goals to ensure that your new ERP system evolves with emerging technologies and industry trends. Look for a vendor committed to innovation and continuous improvement.


Recognizing signs that it’s time for a new ERP system is crucial for maintaining competitiveness and efficiency. Factors such as inefficient functionality, scalability issues, outdated technology, and low ROI indicate the need for an upgrade. Prioritizing features like overall functionality, customization abilities, integration capabilities, and robust reporting is essential. Equally important is selecting a reputable ERP vendor with solid data security measures, comprehensive training, reliable support, and alignment with your business goals.

If your organization is experiencing several of these signs, it’s time to consider the benefits of a new ERP system or to upgrade your existing one. A scalable ERP solution like Frontier can support your current and future requirements for continued success and business growth. Contact us today to learn more.

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