Mid-Size Manufacturers and ERP

Mid-sized manufacturers implementing ERP systems have typically faced one of two dilemmas: overspend with one of the “Big Four” consultants who will lump you into their mid-size practice, or cobble together a solution that is more cost-effective, but does not truly match the need, leading to inefficiencies and continued spend to connect relevant structural steel fabrication systems. Unlike larger global manufacturers, mid-sized manufacturers do not have deep pockets, and often lack the internal resources to guide an ERP rollout from start to finish. These challenges leave many mid-sized manufacturers stuck in limbo—wasting time searching for a middle ground solution, questioning which path to take, or making no forward progress at all. Luckily, resources do exist designed specifically to address this gap. But to find the right partner and be successful, companies need to follow a few best practices as discussed in this blog.

Define Short- and Long-Term Goals

ERP rollouts can be a lengthy process, so breaking them into manageable pieces can be helpful. This eliminates spreading internal resources too thin and has the added benefit of parceling budget out over a longer timeframe. But all ERP rollouts should still track toward an end goal, whether that is end-to-end visibility across the supply chain, creating operational efficiencies, minimizing unplanned downtime, boosting productivity, or a combination of factors. It is important too, to acknowledge that predicting long-term outcomes can be challenging, especially in light of uncertainties like regulatory changes, political pressures or potential recessions. Tapping into an ERP consultant that has a broad view of the market and potential changes that could derail success is one way to reduce the risk of incorrectly prioritizing elements of the rollout.

Look Beyond the Data

Data is a real, yet intangible asset. Its value lies in our ability to glean information out of massive volumes of data, and that requires context. Beyond the act of interconnecting systems, companies must outline a vision for what they hope to gain from their data. For example, interconnected or aggregated data within mining plant and equipment Australia that drives better demand forecasting may require a different type of analysis and reporting than data needed for streamlined production planning, or inventory optimization. Without experience building systems to deliver this type of context, manufacturers can struggle to achieve business process integration across manufacturing processes. A consultant with mid-size experience can offer guidance on how other similar-sized organizations have handled scenarios like yours, which can be a big-time saver. Furthermore, they can shed light on how data can be used beyond ERP systems to extend the value of the investment.

Seek a Partner

Due to the multi-year deployment structure of most ERP systems, it is important to seek out a partner that will stick with you through all stages and demonstrate how value is delivered at each step. During the procurement stage, lay out expectations for technical deliverables as well as strategic and soft skills required, such as a project roadmap, timelines, dedicated consultants, training, and service level guarantees. Ensure that any partner brought on is applying creative thought processes, such as design thinking, to your program, versus trying to fit your organization into their standard project management template. Work to develop a complete timeline, with stages of the rollout clearly defined so expectations are managed on each side.

Concluding Statement

Mid-sized manufacturers do not have to be locked in to choosing between a pricey ERP partner or sacrificing quality for cost. At the end of the day, mid-size organizations face the same operational challenges as their larger counterparts, and should experience the same high level of service, optimized for their budget and needs. With a more active guidance mindset, the right partner can help pave the path toward greater efficiency, productivity, and knowledge, making it easier to compete in today’s market.