Why an Industry Sector-Specific ERP may be Problematic
- On 03/29/2022
There are lots of ERP systems on the market. Don't feel obligated to choose one that only caters to your particular manufacturing industry sector.
When looking for a new ERP system some manufacturers try to reduce their risk by looking for a system that caters to their industry sector. Let us explain why that's not always a great idea.
What we've seen is that, with those kinds of systems, if you look in the database, they're sometimes architected in kind of a peculiar way. Sometimes, that is because a manufacturer somewhere in the world has decided to build their own ERP system, they were very impressed with it, they have commercialized it, and now you can go and buy it.
But those kinds of systems tend to codify one business’ practices – and it's not yours. So what you end up with is something that could be very narrow and inflexible. Instead of risk mitigation, you're now risk-taking.
The ERP vendors know this. They know that their customers want to try and reduce risk. If they can say that their product fits your industry and your business like a glove because you’re a plastics manufacturer ... Well, hey, we've got a plastics manufacturing ERP!
But sometimes all it is is a product that they've acquired from someone else that may have been tweaked to appear like a “plastics ERP”. It's marketing. It really doesn't give you any kind of real value. It just locks you into something that may not support the best practices that are right for you.
My message to you is to not be afraid to look far and wide. Don't box yourself in with something that's necessarily industry sector-specific because it may not work out for you.