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Is your ERP failing? Stop the chaos and find the cause

Implementing new ERP software is a big investment for any small to mid-sized manufacturing businesses, and when it doesn’t deliver what you expect, the impact is felt by everyone. Teams continue to use spreadsheets. Scheduling still feels reactive and often disorganised. And senior managers are questioning why the system isn’t delivering the ROI predicted.

If any of this sounds familiar then you’re not alone. Gartner estimates that more than 70% of recent ERP implementations fail to meet their objectives and, of these, a quarter will fail ‘catastrophically’. 

There are common telltale signs your ERP is failing, but they’re often disguised as general operational challenges, or chaos. 

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Signs your ERP is letting you down

You probably already know the symptoms:

  1. "The data is rubbish": You don't trust your reports. you're still using spreadsheets on the side. 
  2. "It's too hard to use": The shop floor hates it, data entry is late, and morale around the system is low. 
  3. "It didn't fix the problem": You bought it to solve scheduling or inventory, but you still see late orders or stockouts. 
  4. "It's too expensive": You feel like you bought a system that was made for businesses bigger than yours. It doesn't feel like it fits your make-to-order and flexiblity requirements. 

Getting to the root cause

An ERP can deliver exceptional results, but only if it is built on strong foundations. If yours isn’t delivering value, it is likely to be down to one or more of the following:   

  1. You’ve digitising already inefficient processes: Some software vendors will simply replicate manual processes digitally within your ERP, rather than modernising them. This means you run into difficulties as you try to scale up because inefficiencies are already baked in by the system.  
  2. Hidden cost of customisation: Many generic solutions look budget-friendly to begin with. But there’s a hidden cost. To met the unique needs of manufacturing, expensive customisation is needed before you can even get your hands on the platform. These extra requirements can be difficult to update, maintain and change long term.  
  3. Too much admin: Generic software often doesn’t match the requirements of your industry, so it creates an admin burden for your teams. Manually adding data, perhaps reverting to spreadsheets if it doesn’t do what they need, eats up valuable time and increases the risk of duplication and error.  
  4. Training gaps: Once a system goes live, the training often stops. That means existing users don’t get the most from new features and upgrades, while employees who join the company later on have to learn everything for themselves (or spend days being trained by someone else). 
Find the cause

Introducing the ERP Rescue Audit from ECI

To find out whether your ERP is really failing, take our ERP Rescue Audit.  You’ll receive a score out of 60 to demonstrate how well your ERP is working for you.  

You can measure your system's health across five areas: financial performance, operational efficiency, vendor support, system integration and usability.

 

  • 0–15: Generally viable — address targeted improvement areas. 
  • 16–30: At risk — investigate root causes and define a recovery plan. 
  • 31–45: Poor viability — systemic issues are likely; assess replacement options. 
  • 46–60: Critical viability risk — continued investment in the current system is unlikely to be commercially sensible. 

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FAQs

How can I tell if my ERP system is failing?

Common warning signs include unreliable reporting, continued reliance on spreadsheets, poor user adoption, reactive scheduling, stock shortages, excessive administration and rising customisation costs. These issues may indicate that your ERP is no longer supporting the needs of your manufacturing business.

Why is my ERP system not delivering the expected ROI?

An ERP may underperform when inefficient processes have simply been digitised, the software requires extensive bespoke customisation, employees lack ongoing training or the system does not meet the specific requirements of your industry. These problems can increase costs, create duplication and reduce productivity.

What does the ECI ERP Rescue Audit assess?

The ERP Rescue Audit evaluates your system across four areas: financial performance, operational efficiency, vendor support and system integration. You will receive a score out of 20 showing how effectively your current ERP is supporting your business.

Does a low audit score mean I need to replace my ERP?

Not necessarily. Your score will help identify whether your ERP is performing well, requires optimisation or is creating significant operational and financial risk. Businesses with the lowest scores may need to consider beginning a formal ERP selection process, while others may benefit from improved training, support or system configuration.