Why Manufacturers and Distributors Need Upgraded ERP Software

ERP-Software-for-Manufacturers-and-DistributorsHaving the right technology can make or break your manufacturing and distribution success. While many manufacturers believe that having any technology is better than having no technology, the reality is operating with outdated technology and software is just as detrimental to your business as operating with none. In fact, according to recent research performed by Manufacturing Performance Institute (MPI), most manufacturers and distributors lack the IT tools they need to stay competitive in today’s market.

That’s a scary reality, as today’s manufacturing and distribution world continues to grow as new businesses emerge out of the framework. In fact, according to the study, only half of the manufacturers and distributors surveyed had business solutions that were capable of managing their process needs and even fewer had ERP systems capable of meeting the needs of the business in the future. Only a small percentage of those studied had an innovative ERP solution capable of handling future growth.

So, the question begs to be asked: why are so many manufacturers and distributors making do with sub-par and outdated ERP solutions?

In most questions, it’s not due to neglect, a lack of resources or indifference. If you look back over the past few years, you will see how much has changed in so little time. New technology has emerged, customer expectations have evolved, and demand for quality products has grown. Yesterday’s ERP software solutions have quickly become inadequate, leaving many manufacturers and distributors scrambling to keep up with the competition.

While manufacturers and distributors cannot be held responsible for the rapid change in the industry, they can be held responsible for how they embrace these changes. Failing to embrace new technology and upgrade to more innovative ERP systems will only hinder them in the long run. It’s hard to compete if your business systems are complicated, difficult to modify, or lack the functionality you need to meet industry demands. In order to stay in the game, you will need to make some decisions.

According to industry experts, manufacturers and distributors have three choices to make when it comes to addressing technology change:

  1. Replace the existing ERP solution with a more modern and flexible solution
  2. Upgrade or modify the existing software
  3. Extend the ERP’s functionality by creating a two-tier system or adding a point solution

Each option offers manufacturers and distributors distinct benefits. If you would like to discuss your technology options and figure out the best route to take, give us a call today. We not only offer ERP solutions specific to your industry’s needs, but we also offer specified advice to help you discover how to make technology work for your business.

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