How Food Manufacturers Can Avoid ERP Implementation Failures
By Sam Lewis
Putting an enterprise resource planning (ERP) solution to work in your food manufacturing facility can provide insight into almost every aspect of operations. However, with that great understanding of your company’s processes comes the daunting task of implementing the system and the possibility of not achieving your desired results. Recently, Forrest Burnson, a Market Research Associate with Software Advice, took some time to answer my questions about how food manufacturers can avoid the pitfalls of implementing an ERP system.
Food Online: What considerations should food manufacturers make before investing in and implementing an ERP system?
Burnson: Food manufacturers tend to have a lot of unique technical requirements. This often means they'll either have to go with a more established platform and then add on all of their necessary customizations, or go with a lesser known vendor that caters toward their niche. There's no right or wrong approach there, but both situations have their advantages and disadvantages. I stress that it's obviously very important to understand what it is you need and what it is you're buying, as too often those do not align with each other and the buyer doesn't realize it until it's too late. So, do your homework, get client references from vendors, and speak to your peers in the industry about what they're using.
Food Online: Why does implementation of ERP systems fail?
Burnson: There are a lot of reasons, but the most common one we see is poor change management on the part of the organization. They didn't properly train their employees on the new system, they set unrealistic timelines, and they didn't get buy-in from all of the departments that would be affected by the transition. It's very rarely one big mistake: it's a pattern of smaller mistakes that, over time, can derail the whole implementation off the tracks. Interestingly, ERP implementations rarely fail due to the software itself — unless the buyer simply didn't do their homework and bought something they thought would have all of the features they need when it turns out it doesn't. In short, implementations fail largely because people either didn't do their homework or they simply didn't plan well.
Food Online: How can food manufacturers avoid those setbacks?
Burnson: Food manufacturers obviously deal with very sensitive supply chains and even small disruptions within them can have devastating consequences. I would really recommend a gradual, multi-phased implementation schedule that is realistic. It's absolutely imperative for the decision-makers to not only take charge with the project, but to also understand how the changes will impact every aspect of their operation. It's also critical to actively involve your IT team with the project. You need to listen to their concerns and make sure they have the support and resources they need to execute on the nitty-gritty details that a major implementation project entails.
Food Online: How will food manufacturers know their ERP systems are working properly and providing maximum ROI?
Burnson: Ideally, a new ERP system will give a food manufacturer greater visibility into the entire operation which allows them to identify hidden costs, waste, and savings opportunities. It also assists greatly with automating many processes, thus increasing worker productivity and efficiency. It can take a couple years before you see a return on investment from an ERP implementation, so the key is to be patient and understand that it can take time. It's one of those things where I don't think organizations totally appreciate their new ERP system until they realize where they would be without it.
It's also critical to understand that at the end of the day, an ERP system is really just a digital reflection of a business's processes. The system is not going to save a business if that business has pre-existing issues not being addressed by process changes; an ERP system can't fix that.
Food Online: Where can food manufacturers interested in implementing an ERP system get more information?
Burnson: Here at Software Advice, we have a team of advisors who help ERP software buyers build a shortlist of vendors. If you give us a call, (888)234-5187, we'll identify what your needs are and match you with vendors who fit your requirements. It's free and only takes 15 minutes. Also, be sure to check out our eBook on how to prevent ERP implementation failure.
About Forrest Burnson
Forrest Burnson is a Market Research Associate at Software Advice covering the enterprise resource planning (ERP), distribution and fleet management, and construction markets. His research has been cited by notable organizations and publications like Small Business Computing, The Institute for Supply Management, Supply Chain Digital, Auburn University and Michigan Live.
Forrest is a 2011 graduate of the University of the South with a degree in political science and French studies. In 2013, he received his master’s degree in journalism from the University of Texas. Prior to joining Software Advice, Forrest was a researcher for Global Water Intelligence.
About Software Advice
Software Advice is a trusted resource for software buyers. We provide detailed reviews and research on thousands of software applications. Our team of software advisors provides free telephone consultations to help buyers build a shortlist of systems that will meet their needs.