What Manufacturers Often Miss in System Implementation

Tony Barnes, Wil Knibloe III, Grant Ludema
10/3/2024
What manufacturers often miss in system implementation

Significant technology investment in recent years means advanced enterprise resource planning (ERP) systems now have the capabilities to help manufacturing companies increase efficiency, create a more resilient supply chain, get access to real-time financial reports, and improve customer experience.

However, many manufacturers implement the latest, most innovative technology as a plug-and-play solution. Leaders believe that once they plug in their new system, teams can then play out operations as they did before – except with more benefits and greater efficiency.

While cutting-edge systems can help manufacturers achieve their business objectives, a system cannot do all the heavy lifting. Executives must remember two other critical components of a successful implementation: process and people.

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A strong process can optimize system performance

A strong process can optimize system performance

Advanced technology often changes the way workers execute day-to-day tasks. The features embedded in the new system are designed to optimize workflows, but they likely require leaders to reevaluate the process in which a task is performed.

Manufacturers implementing a new system without considering how processes might be tied to a legacy way of doing things risk losing customers, revenue, and operational efficiency.

For example, one manufacturer had several teams working from a dashboard in a legacy system that didn’t require employees to communicate with each other. Once a new system was implemented, users no longer had the dashboard they relied on to do their jobs, and problems ensued. Team members didn’t know how to do their jobs with the new system and weren’t aware of who held specific responsibilities to figure it out. It took weeks for the company to sort out the process and get back on track.

Manufacturers implementing a new system must first evaluate their processes separately from the system. Once leaders have a clear understanding of future processes, they can then use new technology to support those processes.

Strategically positioned people can make or break system implementation success

Strategically positioned people can make or break system implementation success

A company’s operations and supply chain leaders are critical for successful implementation. These leaders know what it takes to get the right materials in the door, assemble the product, and get the right product to customers on time. They can help implementation teams identify how a system needs to be set up for the company to realize the greatest results. Many manufacturers opt to keep these leaders in their existing roles rather than tapping into their knowledge and experience for the implementation. It’s critical for manufacturers to keep business running while rolling out a new system, but this approach must be balanced with having the right people leading the new system implementation.

For example, one manufacturing company implemented an ERP system without involving key operations and supply chain leaders. With nonessential leaders on the implementation team, the system was configured to support legacy processes and didn’t optimize productivity as the company had hoped. Leaders had to spend more money to optimize the system to achieve the original goals and vision of the new system.

Manufacturing companies that want to use advanced technology for innovative solutions must include key leaders in the implementation process. Pulling these leaders from their day-to-day work might strain production, but empowering employees to step into leadership can optimize the implementation process, aid in the company’s growth, and create better long-term results.

Optimize your system implementation with Crowe

Optimize your system implementation with Crowe

If your manufacturing company is considering implementing a new system, the next step is to evaluate your process and people. Advanced ERP solutions offer manufacturers many benefits, but there is only so much a system can do on its own. An optimized system implementation requires that processes, people, and systems are all working together.

Our team at Crowe has worked with many manufacturers like yours and specializes in helping companies realize the greatest benefits from technology. If you have questions about your implementation, we’re here to help.

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The world relies on the products manufacturers make, and when the makers face disruptions, we all feel the effect. Our team of industry and technology specialists at Crowe is dedicated to helping the makers optimize operations using advanced technology.
Tony Barnes
Tony Barnes
Principal, Microsoft Cloud Solutions Leader
Wil-Knibloe-225
Wil Knibloe III
Managing Principal, Supply Chain
Grant Ludema
Grant Ludema
Consulting