6 Steps to Create a Strong ERP Strategy

Build it and they will come, it’s been said. Building an enterprise resource planning (ERP) software strategy will bring your teams to a level playing field with the knowledge and information to implement, use, and succeed with ERP software. Before we can show you how to build one, we first need to define it.

What is an ERP Strategy?

An ERP strategy is the guide that manufacturing companies follow to influence and execute the implementation, application, and use of ERP software. The successful implementation of ERP software is the result of a calculated and well-planned ERP strategy.

As the manufacturing world modernizes, more and more companies are taking the plunge and making an investment in ERP software.

Manufacturers need software and technology to stay ahead of the curve but choosing to implement an ERP software is not a decision that is made lightly. Even if organizations have achieved success and things are going well, there is always room to improve and create processes that are more efficient. ERP software helps you take a deeper look into your business processes and identify areas where improvements can be made. This is the value of ERP software.

A Successful ERP Implementation Includes Three Important Factors:

  1. The right ERP software that fits your company’s needs
  2. The participation and engagement of your company’s people
  3. Processes that will minimize challenges and make for a smooth implementation

Couple those with a well thought out ERP strategy, and you’re primed to begin your journey into simplified manufacturing. So exactly how do you create an ERP strategy that works for your business?

How to Create an ERP Strategy

Learn the six steps to create a successful ERP strategy. We recommend you do these six things prior to or at the start of your ERP software vendor search.

  1. Identify and address IT issues: The IT system currently in place must be able to support the installation of an ERP software that will improve productivity and efficiency and generate more revenue. You might need updated hardware installed. Work with your internal IT team, your ERP vendor candidates, or consult with outside IT professionals to identify what you need.
  2. Set a budget: An ERP implementation often includes upfront costs, and it is not uncommon for an ERP implementation to exceed initial budgets. It is wise for companies to earmark appropriate funds to support the entire implementation, including a contingency budget should any costs overrun.
  3. Plan for integration tasks: If you have a legacy software programs you use such as Nesting or CAD software, there might be times when the new ERP system won’t be able to effectively communicate. You will need to adjust business processes or get tailored ERP software that will allow all your software systems to communicate with one another.
  4. Create a change management and training plan: A change management plan is needed to reinforce the importance of the software and the need to be able to use it correctly. Training is an important part of the ERP implementation process and getting staff members to understand how to use and embrace the new platform is paramount. Remind them that it is a great opportunity to remain open-minded. 
  5. Conduct a risk assessment: ERP software has a huge value. Decision-makers should identify any areas where risk exists and address it before the installation begins. Plan to be proactive rather than reactive.
  6. Outline an ERP roadmap: Before you commit to an ERP vendor, it’s a good idea to outline a roadmap to ensure a smooth implementation. Define clear roles and responsibilities, define a set of objectives, identify milestones, and determine if you have enough resources.

ERP software can take your manufacturing from good to great. It begins with building an ERP strategy. To learn more about how ERP software can benefit your business click here to visit the Global Shop Solutions website.

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