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5 ERP Myths You Believe, pt. 1

Apr 28, 2017 12:00:00 AM / 0 Comments / in Manufacturing ERP Software, ERP Software, Clients First Texas VAR, erp benefits by Nancy Phillippi

The Truth About Common ERP Myths

 
Enterprise Resource Planning (ERP) is a trusted business tool companies use to monitor and facilitate operations, and, in turn, increase revenue. Unfortunately, notoriety is often followed by false hearsay. In this 1st part of a 2-part article, we will be talking about 5 common myths about ERP that some organizations believe.

Myth #1: “The purpose of ERP is for improved operations”

Obviously, the strongest reasons supply chain companies get an ERP solution is to maintain a more accurate record of inventory, assist with report generation, and increase operational efficiency and control, but the purpose of ERP is even greater than that. If it were that simple, it wouldn’t matter which ERP software you choose, because pretty much all of them claim to assist with operations like that, even though they may not do them so well.  The true purpose of ERP also includes usability and customer satisfaction. It doesn’t matter how accurately the system reports your data if it can’t communicate its findings in a forthright manner that is easy to understand and modify.

Another important purpose of ERP is to drive results in areas like interdepartmental communication/collaboration, sales, external operations, as well as internal operations. The results it produces are so important because no matter how fancy your software is, if it isn’t steering your company to success, then it’s not doing its job.

Myth #2: “ERP isn’t affordable for small businesses”

If you grew up with older siblings, chances are you’ve heard things like, “You’re too little for that."  As silly as it sounds, some people think getting an ERP system works the same way. You have to have a minimum of X number of years of data with XX number of users and $X,XXX,XXX,XXX amount of dollars before you can even consider implementing an ERP solution. Although this is sort of true with bulky legacy platforms, it is not the case with modern, cloud-enabled ERP solutions.

A prime example of this is a versatile, SMB-centered solution called Acumatica. Acumatica was built on a technical foundation that is comparable to top-tier ERP products. However, even though it was developed with mid-sized businesses in mind, the pricing and resource levels were made to fit SMB needs. This means that you’re getting a powerful tool for a much more affordable price.

Some newer SMBs (small and mid-sized businesses) don’t have years of accumulated data to put in an ERP system, which is why Acumatica doesn’t require them to. They don't charge for data, so companies can start with or without it.

The real problem for SMBs isn’t that an ERP solution is out of their reach, it's just that they need an ERP that was made for them.

Myth #3: “Most things have to be customized in ERP”

Another item companies should consider when deciding which ERP to implement is how customizable it is. Having the option to further customize your software is ideal for organizations that have a particular set of needs that most ERP systems don’t have out-of-the-box.  This can be especially true for companies that have many governmental regulations such as pharmaceutical companies, and large maintenance, repair, and overhaul (MRO) organizations. But generally, the right ERP should already fit most of your business needs without heavy customization.

When customization is necessary, it should be used only to fine-tune certain areas of the software. Ironically, not only does ERP not require heavy customization, but erroneous customization can cause your ERP to not function properly.

Clients First is an expert at implementing  Acumatica and Dynamics 365 (which made it into the Nucleus leader quadrant along with Acumatica). Contact our sales team today by calling 800.331.8382 or emailing us at info@cfbs-us.com. Clients First team implements and supports clients across the U.S.A. and in 11 countries and counting. Our team of professionals is ready to help implement the best finance and operations solutions for manufacturers, distributors, project-based manufacturers, MRO (maintenance, repair, and overhaul), and professional services.

Read part 2 with the next 4 and 5 myths and an informative whitepaper here:

What ERP Customers Want and Get

Tags: Manufacturing ERP Software, ERP Software, Clients First Texas VAR, erp benefits

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