3 ERP Software Myths
Enterprise resource planning (ERP) software hasn’t always had the best reputation. Stories of project failures and poor user experiences have painted an unappealing picture of ERP. Most of these stories are from an earlier period in the software’s history, when it was overwrought, rigid and prohibitively priced. But even after undergoing tremendous improvements, many businesses still don’t have a great impression of ERP software.
Modern manufacturers and distributors don’t realize that today’s ERP isn’t the same as it was twenty, or even ten years ago. The system has evolved into a necessity for organizations looking to gain a competitive advantage. ERP now has the agility to align with nuanced business needs and give users deep insights at their fingertips. Below, we debunk three common ERP myths and give you the truth about the software.
1. ERP Is Only for Big Businesses
In the early days of ERP, software implementation was no easy task. Projects required expensive investments in servers and hardware as well as extensive coding and maintenance. The costs and complexity made previous on-premises ERP solutions off limits for small and midsize businesses (SMB). Now, some ERP vendors are designing their software with midmarket manufacturers and distributors in mind.
Cloud computing has played a key role in making enterprise software accessible to SMBs. The cloud allows businesses to host their solutions online, rather than mess with hardware. This slashes the cost and timeline of implementations. Cloud ERP is also more scalable, supporting sustainable business growth. Furthermore, your cloud provider will take care of security, so you can concentrate on running your organization.
Additionally, modern ERP is more streamlined and flexible. A large range of features are included out of the box and can be easily configured to meet your business needs. That allows you to minimize customizations without missing out on critical features.
2. ERP Is Difficult to Use
As we’ve already explained, ERP has been streamlined to simplify implementation and management. But does that make the software easier to use? ERP has a reputation for having a steep learning curve and cumbersome interfaces.
Fortunately, vendors such as Epicor have acknowledged user concerns and prioritized the user experience in recent releases. Dashboards, search features and reports have become more intuitive to promote easy usage. Epicor’s Enterprise Search function enables employees to quickly locate orders, customers and other critical information instantly. Its active home page allows each user to populate their dashboard with relevant charts and data. Drag-and-drop features make it easier to manage BOMs, attach files to records and perform other essential tasks. These user-friendly tools shorten training periods and help your employees increase their productivity.
3. ERP Doesn’t Support Lean Manufacturing
Manufacturers often regard ERP software and lean methodologies as working against each other. Lean manufacturing strives to reduce costs; ERP obviously costs money. Lean manufacturing advocates for pull production; ERP tends to favor push production. However, these dichotomies oversimplify the role of ERP in manufacturing, especially with today’s sophisticated solutions.
Though the software has a substantial upfront cost, it can ultimately save businesses enormous sums of money. ERP automates workflows to speed up order fulfillment and reduce human error. By consolidating information in one place, the system can provide detailed cost breakdowns to help you detect wasted expenses. It also monitors every area of your shop floor, so you can detect issues with your machines and materials before they result in downtime. ERP mitigates risk and measures expenses to help businesses capitalize on opportunities to save costs.
Additionally, Epicor ERP gives users the agility to leverage push and pull methodologies. Embedded Kanban functionality gives downstream suppliers visibility into future demand and provides real-time stock replenishment. Material requirements planning (MRP) will determine which components are needed and when based on forecasts, inventory levels and orders, so you can efficiently manage supply and demand. Epicor provides the nuanced control to enable each manufacturer to utilize both push and pull production in accordance with their processes.
Difficulties surrounding earlier iterations of ERP have spawned several myths about the software. But do you know what’s not a myth? ERP has the potential to powerfully transform manufacturing and distribution performance. In one study, 95% of businesses that implemented ERP experienced process improvements. Whether your organization is big or small, it can benefit from the in-depth insights and comprehensive functionality of ERP.
An Epicor Gold Partner, Datix knows what it takes to achieve ERP success. For over 20 years, we’ve offered premier software solutions and services, including our Epicor fixed fee implementation, Microsoft Azure cloud hosting and user training. Our certified consultants will work with you from start to finish to help you leverage the full potential of your ERP solution.
Don’t fall for these ERP myths. Discover how Epicor can optimize your business performance by contacting Datix today!