Why Metals Leaders Shouldn’t Delay ERP Investment

Metals leaders have many variables to consider as they make technology decisions. Following are four considerations that they shouldn’t overlook.

When metals leaders consider investing in an ERP system, it’s critical to understand user perspectives and desired outcomes across departments. But it’s not enough for one person, or even a small team, to gather all the information and decide themselves. If department leaders submit their requests to an executive, there is greater room for misunderstanding and misalignment.

Teams should create a collective understanding of what other departments need and what they’re ultimately aiming to achieve. A wider discussion can help executives gain deeper insight into how an ERP system decision should be made.

Metals leaders commonly overlook how implementing or upgrading an ERP system should align and integrate with its overall business strategy. The question executives must consider is not simply, “Do we need to upgrade our ERP system?” but instead, “How can a new ERP system support the business strategy and help us reach our goals as an organization?”

Leaders considering ERP investment should gather insight from all levels of the organization. They should determine what challenges need to be addressed and what goals the business wants to achieve.

Switching to an advanced ERP system should not be reduced to simply digitizing manual processes. For example, if shop floor workers with a paper-based tracking system move to a digital tracking system, they might think the right technology needs to be configured to match how they’ve been tracking inventory.

Metals leaders need to think critically about the process with a digital-first mindset. This approach requires leaders to determine the outcome they’re hoping to achieve, understand the capabilities of the new technology, and think through how the process might need to change.

In the past, many metals companies have invested in an ERP system, worked toward a go-live date, and continued to use the same platform for years.

However, advanced, cloud-based platforms release several updates in a single year, which means technology is no longer static – and the approach to implementing it shouldn’t be either.

Metals leaders must develop a mindset of continual improvement, adoption, and innovation to get the most out of their ERP investment and stay ahead of the curve.