Mid-size manufacturers and ERP: Striking a balance of cost and guidance

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 doesn’t truly match the need, leading to inefficiencies and continued spend to connect relevant enterprise systems.

Unlike larger global manufacturers, mid-sized manufacturers don’t have deep pockets, and often lack the internal resources to guide an ERP rollout from start to finish. But they still benefit from a unified system that brings together departments such as manufacturing and distribution, supply chain, finance, procurement, HR and more.

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.

 

Define short-term goals, aimed at a long-term vision

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, boosting productivity, or a combination of factors.

It's 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, to context

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 that drives to 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 their vision. 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 for the long haul

Due to the multi-year deployment structure of most ERP systems, it’s 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.

 

Find the right industry fit

Lots of ERP integrators will tout industry expertise, but how deep does it go? As with any consultant relationship, discuss similar companies have they worked with, and expertise in the specific software systems that will be included in the ERP rollout or migration. If they are recommending new systems or software, ask for examples of how it has been successful for other organizations like yours.

Mid-sized manufacturers don’t 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.


Elvis Burcul is senior vice president at Talan, responsible for market development. With nearly 30 years of experience in consulting, delivery and sales, he has a rich background in enterprise technology solutions. He has led numerous high-impact projects, specializing in technology deployment, optimization and strategic planning. Previously, he worked for providers including AspenTech and IBM, where he supported clients in defining value propositions and implementing innovative technologies.

 

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