Guide to choosing an ERP system – from strategy to long-term value

Are you considering a new ERP system? We guide you through the most important points to keep in mind before choosing a new system.

An ERP system can optimize your manufacturing processes, but choosing the right system can be difficult. A good strategy that links your business objectives, supplier relationships and existing system integrations will help you make the right decision. Our guide provides you with practical guidance to simplify decision-making and ensure long-term success.

Step 1: Set clear goals and identify your needs

Define your business needs and make sure the right people are involved

• Identify which departments are most important (e.g. finance or manufacturing) and what their main challenges are. Match their needs to the modules of an ERP system that directly affect their work.
• Assemble a team with representatives from across the business to gather input and build commitment from the start. Keep communication open and make sure everyone is on the same page.

Identifying bottlenecks and strengths

• Identify existing issues in the business and ensure that the ERP system can address them effectively.
• Be aware of the strengths of the business and ensure that the system can maintain or improve them.

Set clear goals

• Set specific goals (e.g. to reduce costs or production times).
• Define measurable KPIs (Key Performance Indicators) that you can use to track results.

Step 2: Evaluate the solution and the provider carefully

Focus on industry-specific functionality

• Choose an ERP system that meets most of your needs without requiring large-scale customizations.
• Make sure that the provider regularly updates functionality relevant to your industry and field of activity. For example, for manufacturing companies, a sustainability report that fulfils CSRD requirements can be crucial.

Reflect on scalability, growth potential and integration with existing tools

• Make sure the system can handle increased data volumes and user numbers and check whether it can be expanded in case of expansion or an acquisition.
• Ensure that the system integrates smoothly with your existing tools, such as CRM or e-commerce.

Research the supplier's reputation and the support they offer. Ask for references!

• Investigate the provider's track record, financial stability and customer feedback. Good support is essential for troubleshooting problems and managing upgrades. Is the system recommended by companies similar to yours?
• Make sure the provider's consultants have experience in the relevant industry.

Step 3: Plan and test drive the implementation

Ensure that there is a project manager in place

• This is your partner throughout the implementation process and they will be responsible for ensuring that the process moves forward.

Ask for demos and test drives

• Test how the system works in different situations such as production planning.
• Evaluate the interface and functionality of the system.

Plan implementation and training

• Create a timeline for data migration and system configuration.
• Ensure that training resources are available (such as webinars, instructional videos and documentation). Follow a basic, proven implementation plan.

Consider the total cost of ownership

• Include hardware, software, implementation, training and maintenance in your calculations.
• Weigh initial costs against the long-term value.

Step 4: Ensure your ERP provider delivers value over time

Does the provider have an experienced implementation team?

• A team with a proven track record can be crucial to a successful implementation. Can they deliver the implementation on time and within budget?

How does the ERP system deliver return on investment?

• Look for clear evidence that the system can meet your requirements so you know the investment is justified.
• Investigate how streamlining processes can lead to financial gains.

Plan for the future

• Choose a provider who will develop the system as your business grows. For example, will they develop support for new technologies?
• Make sure you get continuous support and system updates that go hand-in-hand with your business strategy.

Conclusion

Implementing an ERP system is bigger than a simple technology upgrade: it's a strategic decision that affects every part of your organization. Try to keep your bigger goals in mind while working through this guide. Make sure to involve the right people at each stage.

Look beyond short-term functional requirements and consider scalability, vendor credibility, reputation and the system's capacity to evolve as your business does. With good planning, clearly defined KPIs and a robust plan for managing changes, you can ensure that your ERP system not only solves your current problems, but also provides the right conditions for efficiency and growth in the long term.

Remember, your ERP system should support your manufacturing company's strategic goals, provide measurable return on investment and continuously create value as market conditions change.