How To Navigate the 4 Stages of a Metals ERP Life Cycle

Metals leaders in the planning stage of the ERP life cycle are researching, actively evaluating, and making decisions about vendors and implementation teams to work with. This process can arduous, and leaders might be uncertain about how to make decisions when the stakes are so high.

Common pitfall

Determining the best path forward for a metals company requires balancing priorities, asking the right questions, and rallying a group of leaders around one solution. Metals leaders who make a misstep in the planning phase risk derailing the success of the implementation. One common pitfall can occur when executives ask department leaders only to weigh in on needs and requirements. Asking for feedback is necessary, but too often, these requirements are too focused on how tasks get accomplished, and leaders can miss how the requirements relate to overall goals and objectives.

Action step

Metals executives can avoid this misstep by asking department leaders to identify their strategic goals in addition to what they need to support an existing process. End users tend to focus on accomplishing day-to-day tasks, but widening the lens can help maximize the benefits of a new system.

Metals leaders in the implementation stage of the ERP life cycle work with a team to deploy a new foundational business system. Executives must make difficult decisions while managing expectations, competing priorities, capacity constraints, and implementation.

Common pitfall

An iterative approach to an ERP deployment can help teams work together to affirm that the system is configured for the company's unique operations processes. However, one common pitfall occurs when leaders want to include every new capability of the new system before going live. Doing so can prolong the process, waste time and money, and drain team members.

Action step

Metals leaders can strategically guide their companies through the implementation process more efficiently by setting realistic expectations for the initial scope and establishing why a manageable scope is so important. Executive sponsors should provide regular updates on how the project is progressing, why the company is prioritizing the initiative, and how workers can expect to contribute.

Metals leaders in the optimization stage of the ERP life cycle are in the longest stage, when the business operates with a system that has been in use for years – and likely for years to come.

Common pitfall

Executives can fall into a business-as-usual mentality when it comes to system performance, making it difficult for them to challenge the status quo. They might argue that if processes don’t seem broken, why try to change them? But with technology developing at an accelerated pace, leaders must stay alert to avoid falling behind.

Action step

Metals leaders can optimize their current ERP solution by establishing a framework for continual system process review. This framework should consider opportunities for increased automation, efficiency, and productivity while maximizing the use of current business applications. After they identify areas of optimization, leaders should look objectively at issues and potential solutions. Several users might suggest various solutions, but it takes an objective eye to determine the underlying issue.

Metals leaders in the evaluation stage of the ERP life cycle have likely been using their system for more than 10 years and are now deciding whether to continue optimizing their current solution or invest in a new one.

Common pitfall

This stage is often triggered by users that need additional tools and resources to complete their tasks or by a company that wants to adopt new, advanced technologies but questions if its current solution is compatible. One common pitfall metals leaders might face is short-term wins at the expense of long-term vision and investing too much in custom solutions rather than implementing an updated system.

Action step

Metals leaders can reassess their business by envisioning its position in the next three to five years. They should factor in macroeconomic conditions, growth potential, sale intentions, and upcoming technologies the current platform might not support. Though major changes could be years away, a conversation about when the next ERP system change might occur should be a regular part of strategic planning.

 

Take the next step in your ERP life cycle

Regardless of where your company is in its ERP life cycle, Crowe can help determine next steps. Our team of metals specialists has decades of combined industry experience and deep technical knowledge, which positions us to help you navigate digital transformation with confidence.

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