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5 Signs Your Company Should Implement a New ERP System


as seen online STLBJ Content Logo - online editionThere comes a time in every organization when you begin to have doubts about your existing enterprise resource planning (ERP) system. Is it time to replace the current ERP and start evaluating other ERP systems in the marketplace?

If your organization is facing some of the issues listed below with your current ERP system, then it may be time to look for a new ERP solution.

1. Current system is no longer being supported by the ERP vendor – In today’s ERP marketplace, software vendors are investing time, money and energy on go-forward products. If your company is running an ERP system that is no longer being supported or developed, you are missing out on all of the new functionality and technology being developed. In addition, running unsupported ERP systems can end up costing your company more money in the long run than it would to just implement a new ERP solution.

2. Functional limitations of your current system – Does your current ERP offer functionality for your company to grow? A company may face functional limitations in their current ERP system because of acquisitions, introduction of new products and services, or increased technical requirements from vendors (i.e., EDI files). Additional system requirements may be needed to handle the complexities of these events. Some of the emerging requirements may include a robust point of sale (POS), warehouse management system (WMS), e-commerce, or mobile solutions.

3. Obsolete technology – Is your company still using a green-screen user interface? Is your current ERP experiencing downtime or slow response time due to inadequate software and hardware? If so, it is time for a new ERP system. Companies need to think about the future and whether or not the current ERP is going to continue to scale with increasing business. One way to determine this is if your green screen ERP system is heavily customized. In today’s ERP world, customizations are frowned upon as it makes it harder to upgrade to new releases.

4. Current ERP system does not adequately support the needs of your customers – It’s time to consider a new ERP system if you answer no to any of the following questions:

  • Is your company able to answer questions on order shipping statuses quickly and accurately from your customers while on the phone or in person?
  • In a counter sale environment, is your company losing sales due to slow and time-consuming retrieval of past order history and pricing?
  • Is your company allowing customers to manage their accounts and view order and shipping status information online?

5. Work is done outside your ERP system due to integration issues and complex third-party solutions – A good ERP system introduces new tools, including dashboards and key performance indicators (KPIs), that eliminate the dependency on Excel for reporting. These tools enable your company to have the most up-to-date information without having to contact your IT staff. In addition, overly complicated third-party solutions can create complexity and higher maintenance costs. A new ERP system could eliminate these third-party solutions with out-of-the-box functionality.

Struckel_HenryClick here to discover five reasons ERP software implementations fail and what you can do about it.

If you have questions about ERP software implementation, please contact Henry Struckel, Supervisor, Business Process and Systems Group, at or 314.824.5285.


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