Why 70% of Manufacturing ERP Projects Miss ROI Targets

https://hackernoon.imgix.net/images/h0hZZhiDmZfoW6Qwvk3Tiv67OY93-z893b67.jpeg

Manufacturing companies rarely invest in an ERP system simply to acquire new software. They invest because something in their operations is hindering growth. Inventory counts don’t match physical stock. Production schedules shift daily.

Purchase orders arrive late. Managers spend hours generating reports instead of making decisions. ERP promises to address these issues, yet many businesses struggle to realize the returns they anticipated.

The cause is surprisingly predictable. ERP projects typically fail to deliver ROI not due to software shortcomings, but because companies underestimate the operational changes required.

ROI Begins Before Deployment

One common misunderstanding appears in nearly every ERP conversation. Companies assume ROI starts after go-live. In truth, ROI begins during planning. Manufacturers with clear business objectives often see tangible improvements because implementation targets specific operational problems.

Companies with ambiguous goals usually spend months configuring software without addressing the issues that erode profitability.

Instead of asking, "Which ERP should we...

Copyright of this story solely belongs to hackernoon.com. To see the full text click HERE

Read more