Most manufacturing business leaders know they should keep their technology up-to-date. Why is it then, rather than upgrading their outdated legacy manufacturing ERP, many stick with the status quo year after year? There are many reasons for this. Let’s look at a few of them.
What holds manufacturing businesses back from upgrading their legacy ERP?
Research shows that these are the most popular reasons manufacturers are often reluctant to upgrade their outdated ERPs.
Resistance to change
Poor project management
Weak case for change
Uncertain project scope
Lack of internal skills to take on this kind of project
Which is the most popular among these? Resistance to change earned 75% of the vote in a survey by the consulting firm Deloitte. Inadequate sponsorship and unrealistic expectations followed this. But why? Often one of the driving forces behind a manufacturer’s resistance to replace a legacy ERP is cost concerns. You know there are both monetary and time costs involved if you’ve ever been through and ERP implementation before. So, it must be less expensive to hold on to your existing ERP software than to replace it, right?
Sure, you’re avoiding the obvious costs of buying new ERP licenses and hiring an ERP consultant to help you get the new system up and running. But a study by Chain-Link Research found you’re also giving up some less obvious, but potentially very lucrative opportunities to grow your bottom line and boost efficiency.
2 to 10% revenue growth year over year
1 to 5% gross margin growth year-over-year
24% spike in on-time deliveries
13% reduction in inventory volume
11% lower administrative costs
16% decrease in operational costs
79% improvement in financial results tracking and reporting
While these results are impressive, you might think, “they’re just averages. There’s no way my business would see results like these.” But real manufacturing businesses achieved this and more when they moved to Acumatica, one of the most popular manufacturing ERPs on the market today.