Top 5 Myths about ERP, pt. 1

Enterprise Resource Planning (ERP) is an obviously popular tool companies use to monitor and facilitate operations to ultimately increase revenue. But, with fame comes bad publicity. In this 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”

Although it is true that some of 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 so much more than that. If it were that simple it wouldn’t matter which ERP software you choose because pretty much all of them claim to have that functionality, even though they may not do 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 is 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, bigger siblings chances are you’ve heard things like, “You’re too little”, “You can’t play with my toy. See, it says age 12 and up”. 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 the case with some tier one legacy platforms, it is not the case with the 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-of-the-line ERP products, but because it was developed with mid-sized businesses in mind the resource levels and pricing were made to fit SMB needs. This means that you’re getting a powerful tool for a much more affordable price.

Some newer small, mid-sized businesses (SMB) 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, they just 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. Of course, having the option to further customize your software is great for organizations who 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 it is necessary, customization should only be used to fine tune certain areas of the software. As irony would have it, not only does ERP not require heavy customization but heavy customization performed incorrectly can actually cause your ERP to not function properly.

Clients First is an expert at implementing  Acumatica, Dynamics 365 and Dynamics AX (which also made it into the leader quadrant). Contact our sales team today by calling 800.331.8382 or emailing Clients First 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.

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