Common ERP Misconceptions

Mark Canes

Ever hear that ERP software is only suitable for Fortune 500 companies? Or that ERP software leads to layoffs within a company? How about that ERP implementations are time-consuming?

We hear these and other common ERP misconceptions from time to time when speaking with potential customers. Unfortunately many people hear these myths and don’t take the time to investigate where they come from – so they continue to think that their company and ERP software don’t fit together.  The reality is that ERP software of some type is available and appropriate for companies of virtually all sizes and nature, implementing ERP software does not lead to employee layoffs, and with the right preparation work, implementations can be completed in a relatively short time.

From accounting inventory software, through integrated CRM and inventory management software, to ERP software complete with lot tracking capabilities, many different tiers of software are available to companies in all industries and along the entire supply chain.  In addition, many systems provide additional modules and are customizable to meet individual company needs.

Although ERP software can reduce the amount of manual labour needed to complete processes, it is extremely rare that this would result in having to lay off the employee who previously performed the work.  Employees are needed to work with the ERP system – instead of taking over their position, it will allow them to focus on the more important tasks and less on correcting errors and keying data.

With the proper preparation work from both the software vendor and customer, ERP implementations can be completed within a reasonable time limit.  A key factor to success is ensuring that both sides are fully aware of the plan and resources needed, before commencing implementation.  This is why it is important to discuss these details fully before deciding on which system to use.

Understanding the truth behind each ERP system misconception will provide a comfort level and help realize the value of automated, integrated systems.  So the next time you hear things like “ERP systems are too expensive and lack flexibility” speak to someone who knows the truth.