Common Mistakes to Avoid During ERP Selection and Implementation for Manufacturing Industry

Choosing and installing the right ERP software is crucial for manufacturing companies in India. It can improve operations and make them more productive in successful erp implementation. This software keeps processes under control, but only if users handle it correctly.

You can avoid many mistakes. However, companies often fall into traps that waste time, money, and efficiency. In this blog, we will discuss the common mistakes manufacturers make during ERP selection and implementation. This way, you can avoid repeating them.

8 Common Mistakes to Avoid During ERP Selection and Implementation for the Manufacturing Industry

1. Not Defining Clear Requirements Before ERP selection.

One of the biggest mistakes is starting the ERP implementation process without understanding your manufacturing needs. Many organizations just search for popular ERP software rather than identify features particular to their industry and processes.

For instance, do you need advanced inventory tracking? Does the software integrate with your current equipment? Does it include features for compliance with Indian tax regulations like GST? Without a clear requirements list, you risk buying software that doesn’t fit.

It’s wise to involve representatives from multiple departments such as production, finance, and operations. They can help create a detailed ERP requirements list before you choose a vendor.

2. Ignoring Industry-Specific ERP Solutions

Manufacturing is not like retail or service-oriented. Many organizations choose general-purpose ERP software. However, this software often lacks important tools for manufacturing. These tools include bill of materials, production scheduling, and raw material costing.

To tackle this, always go in for an ERP solution meant for manufacturing businesses in India. These come with batch production features that fit the job work and varied inventory management requirements of the industry.

If you haven’t chosen an ERP system for your business units, check out our blog on ERP software for manufacturing. 

3. Underestimating Implementation Time and Effort.

The ERP implementation in the manufacturing industry is not just about installing software. Workplaces need to adapt, and managers must train the staff. Many manufacturing companies do not set aside enough time for the process. This leads to rushed rollouts and expensive problems. 

Avoid this mistake by:

• Setting a realistic timeline
• Allowing sufficient time for testing and resources for training
• Collaborating with your ERP provider on a phased implementation

The focus should be on a successful go-live, not just a fast one.

4. Not Involving Key Users Early in the Process

Your employees are the ones who will use the ERP every single day. If you don’t involve them in choosing the software, you might end up with a system that is too complex or doesn’t fit their workflow.

Best Practice: Involve key stakeholders from each department production, inventory, accounts, and sales during demos and feedback sessions. Their input can highlight usability issues early, saving you trouble later.

5. Focusing Only on Price, Not Value

Typical Indian business houses give an order for ERP implementation project plan when they hear the cheapest quote. That doesn’t mean cost lacks relevance, but you should view ERP as a long-term investment. The lowest price may not include important features. It may not function effectively, and additional features might be costly.

“Analyze the costs and benefits of prices and total acquisition costs.”. This includes direct costs and indirect costs. Indirect costs are things like licenses, services, implementation, training, and future upgrades.

Check out the free ERP demo and ensure it fits your needs before investing in this reliable and cost-effective ERP system.

6. Neglecting Data Migration Planning

To switch to the new ERP system, you need to transfer data from the old system. If you do not handle the data migration carefully, you can cause errors and leave out some records. This will lead to delays in operations.

How to avoid this:

• Clean and validate the existing data before migration
• If possible, migrate the data in phases
• Test the migrated data for accuracy before it goes live.

7. Skipping User Training

ERP software is only going to be as effective as the employees using it. Without adequate training, they will resist the change or make disruptive mistakes. Invest in role-specific training sessions and ongoing support for a smooth adoption.

8. Overlooking Vendor Support and Upgrades

Implementing ERP in the manufacturing industry is not a one-time task. It involves upgrades, adding new modules, and providing technical support when needed. Often, companies choose ERP vendors with inadequate after-sales support and later regret their choice.

Always check the vendor’s history with customer service. Look at their local support for upgrades and other issues before you make a deal.

Conclusion 

Just make sure to avoid the common mistakes as we discussed. Choosing and using an ERP system can change your manufacturing business. Clear definition of requirements, right people on board, industry-specific solutions selection, proper implementation planning would make a smooth transition.

Ready to see if it’s the right ERP implementation in manufacturing industry? Schedule a free demo. Of course, if you have any questions or need help getting started in any way, don’t think twice about reaching out,  we’d be more than happy to help!

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