ERP can dramatically improve your productivity, eliminate information silos, and help you go paperless. Your ERP system can also improve real-time inventory control, bill of material accuracy, and improve customer service. ERP reporting tools provide valuable operating information and trend analysis.
When you’re looking for an ERP system, brochures and demos usually focus on the details of functional capabilities. Can the system support unlimited customer price levels? Can you enter 15-digit general ledger accounts? How detailed are the forecasting and budgeting capabilities?
Often companies implement an ERP system and after Go Live, further updates and changes are limited. Companies operate for years using the same functionality and processes. It is common to find there are no continuous improvements or ongoing improvement initiatives.
ERP systems also frequently adopt MRP (Material Requirement Planning) systems that “push” production in scheduled batches. This approach frequently results in part shortages and late orders compared to “pull” and one price flow approach of lean manufacturing.