ERP for UK manufacturers: Avoid common traps and find the right system

An ERP is one of the biggest investments a small or mid-sized manufacturer can make – both in terms of upfront costs and the time it takes to onboard staff and processes. 

But even once you’ve chosen a new system, it isn’t always plain sailing. In fact, research suggests that more than 70% of ERP projects fail to meet their original business objectives, with a quarter failing catastrophically. In other words, the majority don’t see the expected returns – often resulting in significant disruption and financial losses or, more likely, the slow erosion of margins.

The reasons for these failures vary from business-to-business but are usually down to a lack of leadership, employee buy-in, vendor support and clear objectives. 

But what about the system itself? 

There are hundreds of ERP products on the market, so picking the right one for your business isn’t quick or easy. As a discrete manufacturer, you need one that supports your specific workflows, allowing you to manage custom orders and complex sub-assemblies without paying for extra features – nor risk your team reverting to spreadsheets and other workarounds. 

With more than 60% of UK manufacturers increasing investment in digital technology, AI and automation, this article looks at how to avoid common ERP implementation traps, and what to look for in a new system. 

Key takeaways

• Start by auditing processes and cleaning data: Review and standardise existing operations before migrating data to avoid recreating operational flaws inside the new system. Next, check all data for accuracy before migration, so teams can make confident decisions.
• Select software built specifically for discrete manufacturing: Choose an ERP that handles multi-level bills of materials and CAD integrations as standard without requiring expensive custom code.
• Support staff through ongoing training: Involve employees early, explain system benefits clearly, and continue staff training long after the initial rollout date.
• Work with a partner, not a vendor: UK-based teams can offer hands-on implementation support, on-site visits, and direct technical support.

Implementing a modern ERP should be straightforward if you avoid the following traps.

1. Digitising bad habits

Migrating to new software isn’t just a case of digitising your existing processes and data, otherwise you’ll run into trouble when you start to replicate and scale them. A good ERP streamlines and improves your processes – but first you need to lay the groundwork. Auditing your existing workflows is the first step because it allows you to address any flaws and standardise from the start. 

Read more: How to migrate your ERP: a practical guide to process, data, and ROI [link to blog when live]

2. Using unreliable data

As well as auditing your processes, you need to make sure that the data contained within your ERP is reliable. From forecasting to resource planning, an ERP is a powerful decision engine – but only if it’s fed with good quality data. 

A rushed migration means that old, inaccurate or inconsistent data may simply be transferred from legacy software and spreadsheets to your new platform. Poor quality data leads to poor decision-making and employees losing confidence in the system, especially as you move towards more automated, including AI-led, decision-making.

3. Customising generic software

A generic ERP system may be perfectly fine if your processes are straightforward but problems arise when you try to make it fit complex discrete manufacturing workflows. As you research the market, ask whether your shortlist of products can handle multi-level Bills of Materials (BOMs) and CAD/PDM data transfer as standard, without needing additional costly custom coding.

4. Focusing on the technical, not the human

On paper, ERP implementation is an IT project, but it’s unlikely to succeed if you don’t prioritise the people who will be using it every day. 

If it doesn’t meet their needs, or they don’t understand why it’s being implemented, they probably won’t use it, at least not in the way it was intended. Senior leaders and project managers have a responsibility to clearly and promptly communicate the value and allay any concerns, particularly around automation or ease-of-use. Listen to their feedback and work collaboratively with them and your vendor to ensure the software delivers on everyone’s expectations.

Just as important is staff training. While the first cohort of employees might receive comprehensive training on the new system, it doesn’t always continue after the go-live date. Knowledge is therefore diluted because teams aren’t brought up to speed on new features, while new-starters are left to navigate the system by themselves. 

5. Choosing a vendor instead of a partner

Off-the-shelf software-as-a-service (SaaS) is quicker and easier to implement than traditional on-premise solutions. There are no hardware requirements, while network security is already configured. That doesn’t mean you should choose a vendor who walks away as soon as the contract is signed, especially when you’re migrating complex workflows. 

An ERP partner with a proven implementation process, which includes scoping, aligning with business goals, and staff training, can guide you through the process, ironing out issues and saving you money on consultants and custom coding. 

When comparing ERP vendors, the benefits they claim are sometimes difficult to visualise – more efficiency, higher productivity, better performance. But what does this look like in reality? Here are some of the more tangible benefits to look for in an ERP. 

1. Unifies back office and shop floor

A system that unifies the back office (quoting, sales, accounts) with the shop floor (live time tracking, production planning, inventory) saves time because teams can easily input and surface information. They have a reliable ‘single version of the truth’ which speeds up decision-making, and eliminates manual and shadow processes like individual spreadsheets. 

2. Experts in discrete manufacturing

A system that natively supports discrete Make-to-Order (MTO) and Engineer-to-Order (ETO), with features like direct CAD integration, live job costing, and real-time shop floor tracking, can deliver value from day one, with no unexpected costs. 

Choosing a vendor with experience in this type of manufacturing means they’re continually developing software based on the changing requirements of businesses like yours. That means you can expect features like live job costing and shop floor tracking, and direct CAD integration. 

3. Vendor has a UK presence

From sales to implementation to ongoing training and support, choosing a vendor with a UK-based team on hand to support your ERP migration is a big plus. They can visit your site, train your staff and be on hand to answer any questions or address technical issues before going live with the system. 

4. Matches the size of your business

Choosing an ERP involves more than just comparing brands – you need to determine whether it’s the right fit for your size business too. 

Small and micro firms can get started with a stripped down yet powerful core product, with short implementation times to minimise disruption and IT workloads. 

Mid-sized manufacturers need a more comprehensive range of features and onboarding, including staff training to manage complex workflows. An ERP that grows with you is another priority, otherwise you could find yourself going through another implementation process in just a few years’ time. 

Smaller manufacturers can start with Ridder iQ Essentials – a streamlined, web-based platform that includes core features such as shop floor control and CAD integration. They can then easily upgrade to the full Ridder iQ ERP system which offers a broader range of features to support operational complexity and a bigger workforce. Compare Ridder iQ Essentials and Ridder iQ.

Choosing a new ERP can feel like a headache, especially if you’ve been stung in the past by a system that failed to deliver on expectations and was difficult to implement. Many modern ERPs are intuitive, with even core versions backed by strong system architecture and data security. Implementation can be both comprehensive and straightforward when you choose a vendor partner with a proven process for discrete manufacturers. 

Narrow down your search and see how a cloud-based ERP like Ridder iQ could help you achieve your goals.