ERP implementation can either transform your business or lead to costly setbacks. For midsize manufacturers, avoiding common mistakes is crucial to ensure success. Here’s what you need to know to get it right:
- Missing Leadership Support: Without executive buy-in, projects face delays, budget overruns, and poor adoption rates.
- Unrealistic Expectations: Most ERP projects take longer than expected – plan for 21 months on average.
- Poor Documentation: Incomplete business requirements lead to expensive customizations and operational misalignment.
- Excluding Stakeholders: Ignoring input from key departments results in resistance and functionality gaps.
- Underestimating Resources: ERP tasks require dedicated time and expertise – don’t stretch your team too thin.
- Wrong Implementation Team: Lack of technical and industry expertise can derail the project.
- Skipping Training: Insufficient user training leads to frustration, errors, and low system adoption.
Avoid these pitfalls by securing leadership support, documenting workflows thoroughly, involving all departments, and investing in proper training. A well-executed ERP system can improve efficiency by up to 30%, reduce inventory costs for 75% of companies, and deliver a 66% ROI within three years.
Want to learn more? Keep reading for actionable strategies, industry-specific examples, and tips to ensure your ERP implementation succeeds.
7 Most Common ERP Mistakes in Midsize Manufacturing
Avoiding common ERP pitfalls can help manufacturers save money and keep projects on track. According to Gartner, 75% of ERP implementation projects face setbacks during the process. Let’s break down the most frequent mistakes and their consequences.
Missing Executive Support and Leadership
One major misstep is starting an ERP project without strong support from top leadership. When executives don’t prioritize ERP as a business transformation, the project often falters. Teams may struggle to secure resources, face budget limitations, and deal with competing priorities. Without visible commitment from leadership, confusion spreads, deadlines are missed, costs increase, and adoption rates drop.
“ERP implementation failures or hardships are defined by projects that fail to implement on time, on budget, or fail to deliver the expected business benefits.” – Jim Holman, Strategy & Operations Leader, Cherry Bekaert Digital Advisory
Gartner reports that 55% to 75% of ERP projects either fail outright or don’t meet their goals. To avoid these issues, executives must stay engaged throughout the process – from selecting the ERP system to overseeing its implementation and ongoing use.
Setting Unrealistic Project Expectations
Another frequent mistake is underestimating the time and resources needed for a successful ERP rollout. Many manufacturers assume ERP is a quick fix, but the reality is far more complex. In fact, 57% of organizations take longer than planned to implement their ERP systems, with most projects lasting an average of 21 months.
“The biggest reason ERP implementations fail is because companies don’t have a clear understanding of their business needs and how the software can meet them.” – Forbes
Rushing through implementation can trigger a cascade of problems. Insufficient testing leads to system errors, incomplete training frustrates users, and poor data migration disrupts daily operations. Unrealistic timelines often result in additional customization requests, which inflate the scope and cost of the project.
Poor Business Requirements Documentation
Skipping the step of thoroughly documenting business processes and departmental needs before selecting or customizing ERP software is another costly error. Without a clear understanding of current workflows and future goals, companies risk ending up with a system that doesn’t align with their actual needs. This mismatch often requires expensive customizations later on.
“The biggest mistake companies make when implementing ERP is viewing it as an IT project. ERP is a business transformation, and it needs to be led by the business. That means having a clear vision for what you want to achieve with ERP and getting buy-in from all stakeholders from the start.” – Forbes
Poor documentation can lead to constant revisions, scope creep, and a system that fails to support critical operations. For manufacturers, this can mean neglecting essential areas like quality control, compliance tracking, or supply chain management.
Excluding Key Stakeholders from Planning
Leaving out key stakeholders during the early planning stages is another common misstep. When frontline teams are excluded, the ERP system often fails to address their specific needs. For example, manufacturing departments like operations, quality control, procurement, and production planning each have unique requirements. Ignoring their input can lead to gaps in functionality and resistance to the new system.
Stakeholders who feel left out are more likely to resist change, creating inefficiencies and workarounds that undermine the ERP’s effectiveness.
Underestimating Time and Resource Needs
Midsize manufacturers often misjudge how much time and how many resources an ERP implementation requires. Unlike larger companies with dedicated IT teams, midsize firms usually depend on employees who juggle ERP tasks alongside their regular responsibilities. This divided focus can cause delays and incomplete planning, which snowball into larger setbacks.
When early phases drag on, later stages like testing, training, and data migration are often rushed, leading to operational disruptions. This highlights the importance of realistic planning and resource allocation from the start.
Selecting the Wrong Implementation Team
Choosing the wrong team for implementation can derail the entire project. Many midsize manufacturers underestimate the value of assembling a team with the right balance of technical skills, business expertise, and project management capabilities. Without experienced team members who understand both the software and the manufacturing processes, projects are more likely to face delays, budget overruns, and systems that fall short of operational needs.
Skipping Change Management and User Training
Overlooking change management and user training is a mistake that can undermine even the best technical implementation. Many manufacturers focus so heavily on the software that they neglect the human side of the transition. Without proper training, employees face steep learning curves, which can hurt productivity and lead to frustration. Similarly, failing to manage change effectively leaves employees unsure of the system’s benefits, making them more likely to resist or revert to outdated processes.
Successful ERP adoption requires ongoing support. Beyond initial training, companies should provide continuous resources and refresher sessions to ensure employees can use the system effectively over time.
How to Avoid These ERP Implementation Mistakes
Now that we’ve covered the common pitfalls, let’s look at practical steps to ensure your ERP implementation goes smoothly.
Getting Leadership Support and Buy-In
Start by building a strong business case with a clear cost–benefit analysis, timeline, and strategic goals. This helps secure executive support, which is critical for success. Leaders should be more than just figureheads – they need to actively participate in key decisions like vendor selection and requirements gathering. Regular updates and their involvement in change management efforts, such as kickoff meetings and internal communications, can significantly reduce resistance from employees.
Creating Realistic Project Goals and Timelines
Set a clear go-live date and work backward to establish milestones for each phase – vendor selection, configuration, data migration, testing, and training. Leave room for unexpected delays by including buffer time.
Learning from peers in industries like chemical processing, pharmaceuticals, food and beverage, or furniture manufacturing can provide valuable insights. Challenges such as batch tracking, compliance needs, and supply chain complexities are common hurdles you’ll want to prepare for.
Use a detailed project plan to break tasks into smaller deliverables. For example, instead of a broad category like “system configuration”, specify tasks like “inventory management setup”, “production planning configuration”, and “quality control workflows.” Revisit your timeline at key stages, such as after vendor selection or requirements gathering, to adjust as needed before critical phases like testing or training.
Complete Business Requirements Analysis
To avoid incomplete documentation, thoroughly map out your manufacturing workflows – from engineering and production to shipping, sales, and accounting. Don’t overlook administrative processes like compliance reporting, quality documentation, and supplier management.
Engage with department representatives to capture detailed workflow and reporting needs, focusing on core manufacturing tasks. Document not only what processes are in place but also why they exist and how their success is measured.
Tailor your analysis to your industry’s specific needs. For example:
- Chemical manufacturers often require robust batch tracking and regulatory compliance tools.
- Pharmaceutical companies need detailed audit trails and validation features.
- Food and beverage firms benefit from lot tracking and expiration date management.
- Furniture manufacturers face unique challenges with customizable product configurations.
Including All Departments in ERP Planning
Create a cross-functional planning team with representatives from production, procurement, quality control, sales, finance, and IT. Each department offers unique insights:
- Production teams know shop floor workflows.
- Procurement staff understand supplier requirements.
- Quality control ensures compliance standards are met.
- Sales teams need inventory visibility.
- Finance requires seamless accounting integration.
Hold regular stakeholder meetings to address emerging issues and evolving needs throughout the project.
Proper Resource and Timeline Planning
Assign dedicated resources to ERP tasks, whether through internal team members or external experts. Plan for additional costs – allocate 15–20% of your initial budget for post-go-live support and training.
Keep an eye on workload distribution. If team members are stretched too thin, adjust timelines or bring in extra help to prevent mistakes. Be mindful of seasonal factors, avoiding go-live dates during peak production times or busy compliance periods. Schedule training sessions during slower periods to allow employees to focus on learning.
Assembling the Right Implementation Team
The right team can make or break your ERP project. Choose individuals with both technical and manufacturing expertise. Your project manager should understand ERP systems and how they align with your business operations.
Include team members who are deeply familiar with your processes. For instance, a production supervisor with shop floor experience or a quality manager with compliance expertise will provide more valuable input than someone with only general IT knowledge. If your team lacks expertise in areas like data migration or system integration, bring in external consultants, but ensure your internal team works closely with them for knowledge transfer. Clearly define roles and responsibilities to avoid confusion or overlap.
Implementing Change Management and Training Programs
Start change management efforts early. Conduct a readiness assessment to gauge how prepared your organization is for new systems and processes.
Develop a communication plan that uses multiple channels – team meetings, emails, or bulletin board updates – to explain the benefits of the new system while addressing potential challenges.
“Renewable Energy Group (REG) achieved impressive results by focusing on hands-on, contextual training. They provided users with guided workflows to complete tasks using a ‘learn by doing’ approach, which led to a 50% reduction in time-to-proficiency for new users, a 3-month reduction in ERP adoption for new hires, and a 600% reduction in daily ERP-related IT help desk tickets”.
Create role-specific training programs so employees learn what’s relevant to them. For example, production workers, quality inspectors, and procurement specialists all need tailored sessions. Use sandbox environments where employees can safely practice new processes.
Plan for ongoing learning by offering refresher courses, peer learning opportunities, and easy access to support resources. Regularly monitor user adoption and gather feedback to identify areas for improvement. These steps ensure your team is fully equipped to embrace the new system and use it effectively.
Case Studies: ERP Implementation Mistakes and Solutions by Industry
These case studies highlight how addressing industry-specific challenges with tailored strategies can help avoid costly ERP mistakes.
Chemical Manufacturing: Unclear Project Goals
The Problem: Chemical manufacturers often struggle with poorly defined objectives for tasks like batch tracking, formula management, and regulatory compliance. Without clear goals, ERP systems can fall short in managing complex batch documentation or meeting strict regulatory standards, leading to production delays and compliance issues.
The Solution: To sidestep these challenges, chemical companies need to establish precise, measurable goals that address their specific needs. Instead of vague aims like “improving efficiency”, successful strategies focus on concrete outcomes, such as streamlining batch documentation and ensuring compliance with regulatory reporting. Leadership teams should define success for each department – production requires smooth batch tracking, quality control needs automated compliance tools, and procurement demands better supplier management. Aligning these goals across departments ensures ERP implementations remain focused and deliver tangible results.
Pharmaceuticals: Incomplete Requirements Planning
The Problem: Pharmaceutical companies often face compliance risks when ERP systems lack critical features like digital signatures, audit trails, or validation workflows. These gaps can disrupt operations and lead to costly regulatory investigations.
The Solution: Comprehensive requirements planning is essential. This means documenting every regulatory and operational need in detail. Regulatory affairs teams should be involved from the start to outline requirements such as batch records, electronic signatures, change control procedures, and deviation management. Testing the ERP system against these needs before signing contracts helps avoid expensive oversights and ensures the system can handle the demands of a heavily regulated environment.
Food and Beverage: Inadequate User Training
The Problem: In the food and beverage sector, insufficient ERP training can lead to errors that result in recalls, compliance failures, and financial losses, especially in areas like lot tracking, expiration date management, and food safety compliance.
The Solution: Building comprehensive training programs is key. These programs should include hands-on simulations where employees can practice tasks like managing lot tracking, handling expiration alerts, and executing recall procedures. Role-specific training ensures that production workers, quality inspectors, and warehouse staff all gain the practical skills needed to use the ERP system effectively. Additionally, appointing internal ERP power users provides ongoing support and reinforces proper system usage.
Furniture Manufacturing: Wrong Team Selection
The Problem: Poor team selection often leads to configuration errors and inefficiencies in furniture manufacturing, particularly when dealing with customizable products and complex bill-of-materials management. Teams without industry experience struggle to address these unique challenges, resulting in system failures and operational disruptions.
The Solution: Furniture manufacturers should assemble teams with a strong understanding of their industry’s complexities. This includes working with partners who have experience in made-to-order production, custom configurations, and intricate supply chains. The right team combines technical know-how with a deep understanding of furniture manufacturing workflows, ensuring ERP systems are configured to handle diverse product options, materials, and seasonal sales patterns. Companies should thoroughly vet team members by reviewing their past industry projects and actively involve internal teams throughout the process.
Addressing these challenges with industry-specific strategies is critical for successful ERP implementations and avoiding costly mistakes.
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Comparison: ERP Implementation Mistakes vs. Best Practices Results
Avoiding common ERP pitfalls can lead to game-changing results for companies. While a staggering 75% of ERP projects falter, those that follow best practices see major improvements across their operations.
Financial Impact and ROI
When ERP projects are handled correctly, the financial rewards are substantial. According to a Forrester Total Economic Impact™ study, well-executed manufacturing ERP projects can deliver a 66% ROI within three years, with a $1.4 million net present value and a 16-month payback period. On the flip side, companies that fall into common traps often face costly setbacks – 74.1% of ERP projects exceed budget, and 21% fail to deliver meaningful business benefits.
For example, a leading manufacturer achieved a 50% increase in sales by ensuring strong leadership involvement throughout their ERP rollout. These kinds of financial gains often pave the way for significant operational improvements.
Operational Efficiency Outcomes
A successful ERP implementation can improve operational efficiency by 40%–60% and cut reporting times by 40%–55%. Companies with a strong focus on learning and team development see even better results, including 21.8% higher profit margins and 41% fewer process errors. On the other hand, poor planning often leads to operational headaches like inaccurate data, low user adoption, and disruptions to daily workflows.
“The only sustainable competitive advantage is your people.”
By sticking to best practices, businesses can not only enhance efficiency but also ensure projects stay on track and within scope.
Timeline and Project Success
Companies that prioritize best practices – such as securing executive buy-in, thoroughly documenting requirements, and building the right project team – are far more likely to meet deadlines and stay within budget. In contrast, 61.1% of ERP implementations run over schedule when planning missteps occur.
Industry-Specific Results
The benefits of ERP best practices often vary by industry. For instance, a food and beverage manufacturer reported impressive outcomes, including $250,000 saved in reduced write-offs due to lot traceability, 0% product miss-shipments, and a 30% reduction in warehouse staff.
Long-Term Business Impact
The advantages of avoiding ERP mistakes go well beyond short-term operational gains. Companies that get it right enjoy better customer satisfaction, higher productivity, and more effective cost management. They also eliminate data silos, speed up decision-making, and gain real-time insights into their supply chains. In contrast, failed implementations can wreak havoc – accounting teams struggle with inaccurate data, inventory management becomes chaotic, manufacturing processes are disrupted, and sales teams lose visibility into customer orders.
The Bottom Line
Adhering to ERP best practices provides a clear edge. Companies that invest in proper planning, training, and execution see measurable gains in efficiency, profitability, and growth. Those that cut corners, however, face expensive fixes and missed opportunities for years to come.
“Unarguably, ROI comes from process improvements ERP supports, not from new ERP software.”
ERP implementation should be treated as a strategic overhaul, not just another software update. The financial, operational, and long-term benefits underscore why a thoughtful approach is crucial for midsize manufacturers aiming to stay competitive.
Conclusion: Planning for ERP Success in Manufacturing
Implementing an ERP system successfully in midsize manufacturing companies requires thoughtful planning, strong teamwork, and a long-term commitment. When companies stick to best practices, they see clear results. On the other hand, skipping key steps can lead to expensive delays and disruptions in operations.
A solid ERP project starts with gaining executive support and putting together a well-rounded team. Research shows that 75% of ERP failures happen because the project team isn’t the right fit. This team should include representatives from IT, finance, operations, and other critical departments to make sure every angle is covered during planning and execution.
Collaboration across departments from the very beginning is key. It helps avoid silos, ensures thorough requirements gathering, and builds widespread support for the ERP system. This teamwork allows potential challenges to be addressed early and sets the stage for a smoother implementation process.
Structured planning combined with ongoing, role-specific training can lead to major improvements. In fact, 67% of organizations report performance gains within the first year, and on-time completion rates can increase by as much as 90%. However, between 50% and 75% of ERP projects fail or fall short of expectations, often because companies don’t fully account for the human element. A well-designed training program – complete with hands-on practice, dedicated support, and regular refreshers – reduces errors, improves data accuracy, and equips employees with the skills they need to help the business grow. These efforts also strengthen the organization’s ability to leverage the ERP system for industry-specific needs.
For midsize manufacturers in sectors like chemical, pharmaceutical, food and beverage, and furniture, modern ERP systems such as Procuzy offer tailored solutions. Features like real-time inventory tracking, automated stock alerts, and advanced production planning not only streamline operations but also deliver measurable results. On average, these systems provide a 52% ROI and achieve 30% cost savings in purchasing and inventory management. With seamless integration into existing processes, the right ERP platform can revolutionize operations while driving financial success.
FAQs
How can midsize manufacturing companies secure executive support for ERP implementation?
Securing executive buy-in for an ERP implementation begins with tying the project directly to your company’s strategic objectives and clearly illustrating the return on investment (ROI). Show how the ERP system can improve operational efficiency, simplify workflows, and ultimately boost profitability.
Get executives involved early by establishing an ERP steering committee that includes leaders from key departments. Transparent communication is crucial – share how the system will benefit the organization and support its long-term goals. When executives understand how the ERP aligns with their priorities and contributes to growth, they’re more likely to advocate for the project and drive its success.
What are the best ways to manage change and ensure employees adopt an ERP system during implementation?
To help employees embrace an ERP system, start with clear and early communication. Share why the ERP is being implemented, how it supports the company’s goals, and what advantages it offers both to the organization and individual employees. Keeping everyone informed with regular updates can ease uncertainties and reduce pushback.
Get employees involved right from the start by asking for their input and listening to their feedback. When people feel included in the process, they’re more likely to support the change. Offer role-specific, hands-on training to help them understand how the system works for their daily tasks, and address any concerns or hesitations they might have. This builds confidence and reassures them they’re not navigating the change alone.
Finally, strong leadership plays a key role. Leaders need to actively support the ERP project, demonstrating a positive outlook and commitment to the change. Connecting the implementation to the company’s broader vision and offering continuous guidance will encourage engagement and make the transition smoother for everyone.
What unique challenges do chemical, pharmaceutical, and food & beverage manufacturers face during ERP implementation, and how can they overcome them?
Chemical, pharmaceutical, and food & beverage manufacturers deal with unique challenges, including navigating strict regulations, managing intricate formulas or recipes, ensuring consistent quality, and handling inventory that may be perishable or sensitive. To address these complexities, they need ERP systems designed to simplify compliance, automate quality assurance processes, and enhance inventory management.
Focusing on industry-specific ERP features can make a significant difference. For instance, tools like batch tracking, regulatory reporting, and real-time inventory monitoring are game-changers. Pharmaceutical companies can use automation to stay aligned with FDA requirements, while food & beverage manufacturers benefit from ERP solutions that handle shelf life and traceability. These tailored features not only boost operational efficiency but also help businesses stay compliant and better meet customer expectations.
