Your ERP implementation is failing. Now what?

Investing in a new ERP system, only to watch it fail, is frustrating for everyone involved. 

Instead of smoothing your production processes, unsuitable or poorly-implemented ERP software complicates tasks, exacerbates existing data quality issues and pushes staff back towards the spreadsheets and paper records that ERPs are designed to replace.

A failing ERP is extremely common. Research from Gartner projects that by 2027, more than 70% of recently implemented ERP initiatives will fail to fully meet their original goals, with a quarter of those projects failing ‘catastrophically’.

In this blog, we’ll examine the main reasons why manufacturing ERP projects stall, explain how to identify the root causes of friction in your business and outline the practical steps you can take to get your implementation back on track.

Key takeaways

• ERP implementation projects often fail because companies underestimate how much time and effort is required to transition to a new piece of software. Many organisations also fail to clean their data before launching, or try to manage the project from the top down without involving their production teams. 
• You can get a stalling implementation moving again by appointing an internal project champion, tackling one specific pain point at a time, and making a strict rule that everyone uses the new system as soon as it is launched.
• To decide whether you need a new ERP system, analyse where your current setup is falling short on routine tasks and costing you extra money. It is also useful to scrutinise how much support you are receiving from your vendor and whether they truly understand your industry. 
   

ERP implementation projects usually stall because businesses underestimate the time and internal management required to align the software with every part of their business. Because an ERP coordinates your entire manufacturing operation, you have to monitor many moving parts at once to achieve a successful rollout.

This takes careful planning, as well as clear communication across all your departments – including sales, accounts, purchasing, stores and production. Overlooking any single part of the process can cause the project to falter.

Lack of buy-in across teams

Many ERP deployments falter because companies treat them as a purely technical IT task. When an IT department or a group of external consultants handle the rollout without consulting the teams that run production, the system is often chosen for theoretical rather than practical reasons. The software might make inventory tracking easier for the accounts team, for example, but force a machine operator to spend more time on admin to log a standard batch of parts.

This issue worsens when organisations concentrate all their training and project planning at the board level. An ERP transition cannot be managed solely from the top down – it must involve your wider operational teams from the start, otherwise knowledge and buy-in becomes siloed among leaders. Real-world examples of this disconnect appear often on online forums. In a Reddit thread on r/ERP, one user shared their frustration as their deadline approached:

“We have a go-live date coming up soon, and they [IT and external consultants] only just enquired how the release of inventory is going to work. They have not involved the inventory manager at all up to this point. Having seen how overlooking key stakeholders at this stage can derail even the most well-planned go-live, I’m not feeling optimistic.” 

Migrating inaccurate or messy data

An ERP system only functions well if the data you feed into it is correct. After years of manual entry, your records may not be accurate. You might have duplicate names for the same supplier, outdated part specifications, or inventory counts that do not match what is sitting in your warehouse.

Problems begin when you move this flawed data into a new system. ERP platforms synchronise all of your purchasing, inventory and production information, so if a figure is incorrect in one area, it will automatically show as incorrect in another. Teams using the software for the first time will spot inaccuracies immediately, struggle to trust the new software, and, in the long run, go back to using spreadsheets and paper notes.

Rushing the implementation by skipping the data cleansing stage means you simply digitise your previous mistakes. Manufacturing teams often underestimate how long this step takes, promising to deliver clean spreadsheets in days only to spend months sorting through legacy records. You need to budget realistic time for cleaning data so your implementation schedule stays accurate.

Replicating legacy processes 

Another common issue is when organisations attempt to modify their new software to match previous habits or old software features, regardless of whether these processes are effective or not. This often means building extensive, bespoke code rather than using standard features, which costs more time and money and makes the platform more prone to errors. Heavy customisation often inflates budgets, delays go-live dates and creates a fragile setup that breaks easily when updated. ERP platforms are built around tested, standard manufacturing processes. To get real value out of a new system, you must adapt your old routines, rather than paying extra to digitise older inefficiencies.

Choosing the wrong software or supplier

Manufacturing firms often run into trouble because they purchase generic software or partner with ERP providers who don’t have sufficient manufacturing experience. A basic ERP system cannot handle the complexity of the factory floor, and will not include specialist features like multi-level parts lists, links to CAD files and automated job costing.

Some software vendors will also hand the implementation of your ERP over to third-party consulting firms, many of whom won’t have experience of the manufacturing sector. These consultants often work from standard checklists rather than taking the time to learn your business. In a Reddit discussion about the causes of ERP failures, one user affirms this experience:

“Customers are purchasing complex, expensive software, and then relying on consultants, who are often paid by the hour or who have strict project scopes, to perform the implementation. Who is on the hook for success? Most of the time, nobody.”

Working with a dedicated provider who builds software specifically for your industry ensures you receive practical guidance from people who understand how a factory floor actually runs.

Moving at the wrong pace

Projects frequently lose direction when a business fails to find a balanced speed for the rollout. Rushing causes mistakes and data quality issues, while dragging the process out over several years drains your team’s enthusiasm. To find the right momentum, plan the project based on how quickly your team can realistically test and adopt new features, rather than working to arbitrary deadlines.
 

While a failed ERP implementation can feel like a major setback, you can quickly get the implementation back on track by taking a few simple, practical steps.

Appoint an internal project champion

Find a leader inside your company who is experienced enough to understand how all the moving parts of your business interact. Grant them the authority to make quick decisions, resolve issues between departments and challenge any external consultants involved in the project.

Without a dedicated advocate for your specific operational needs, authority can become muddled between different departments and stakeholders, many of whom won’t understand the bigger picture problems the ERP is intended to solve. Naming a project champion also creates a clear chain of communication, command and responsibility, meaning staff know who to consult and provide feedback to as the project progresses. As one Reddit user shared from their own ERP project experience:

“Having an appropriate implementation champion is important. I was that person at my previous company, and someone owning the implementation internally was critical to a successful launch.”

Break the project down into small sprints

Trying to fix every faulty process at the same time will overwhelm your team. Instead, focus on solving one practical, achievable problem at a time, such as fixing stock tracking or automating customer quotes. 

Use AI to accelerate data cleansing

If disorganised legacy data has stalled your project, the prospect of manually cleaning years of records can seem daunting. However, low-cost AI tools can quickly identify trends across your spreadsheets and normalise variations in your data, such as aligning different units of time or part descriptions.

Enforce data consistency

Leadership must make sure the software is being used across the entire organisation, otherwise the data inside the ERP will not be accurate. Make it a firm rule that every department logs their tasks and inventory changes directly through the central system, removing the option of reverting to private spreadsheets. 

Havatec, a Dutch manufacturer, builds sorting and handling machines for the cut flower industry. They originally used manual tracking systems and handled production planning using Excel and Access, but after moving to a larger warehouse, these processes were no longer fit for purpose. However, an early attempt to implement an ERP failed because the company lacked internal support, and the team drifted back to their old habits.

Havatec turned to Ridder iQ to fix the issue. After appointing a dedicated process manager to work alongside ECI’s implementation team, they ensured that all teams were inputting data through the ERP. Before any software was configured, the implementation team created a detailed blueprint of Havatec’s operations, reviewing the design with department leaders to build consensus. They also introduced live shopfloor tracking, which required operators to log their hours and production tasks directly into the software.

Transitioning to a single system gave Havatec an accurate, live view of their inventory, making it easier to arrange production schedules and predict exactly how much work their factory floor could handle in the future.

To help you identify where your ERP project might be failing, we have developed the ERP Rescue Audit. This quick diagnostic tool assesses your system across four key areas: financial performance, operational efficiency, vendor support and system integration.

By answering 20 straightforward questions, you can pinpoint exactly where your current setup is falling short and begin the process of getting it back on track. 

• 16-20 points (optimal performance): Your ERP provides a strong foundation for growth. You’re ready to use its advanced features.
• 11-15 points (performance gaps): Excessive admin and customisations are likely reducing your ROI.
• 6-10 points (high risk): The system is costing you more in administrative inefficiencies than the licence is worth.
• 0-5 points (time to move): The ongoing cost of manual errors and developer fees will soon exceed the cost of replacing the system. You should begin a formal Request for Proposal (RFP) process for a new system immediately.