Switching ERP software providers is no trivial project. It could be one of the hardest-but most rewarding project your business takes on. Unfortunately it’s not as simple as just picking a new software package. In most companies you’ll find people who may be resistant to change due to financial constraints, the time implementation and training may take, or what a new system could mean in terms of your operations.

The reality is though, if you’re failing to meet customer needs and you’ve begun to notice process inefficiencies, waiting to switch could hurt your business profitability both now and into the future.
So just how do you know when you’ve reached the point where making the change can be worth it? Let’s take a look at six signs it’s time to switch ERP software providers.

1. Provider Support is Lacking

Chances are very good that when you or someone else in your company needs support from your ERP provider, they need it right away. In the best-case scenario, your current provider offers dedicated customer support through phone, e-mail or chat with emergency after-hours support as needed. A lot of vendors promise this, but not all deliver. It could be a time zone issue, or your vendor’s hours of availability are limited because they’re working on other projects, if it becomes increasingly difficult to get same-day help, you might consider other options.

It’s not too much to expect that when you have a critical issue, someone is there to assist. Delayed or incompetent support can prolong critical outages, lead to product delivery delays, and disappoint your customers. Remember: you’re paying for a functioning system.

2. Vendor is Growing Too Quickly

Perhaps when you first signed on with your vendor, their size and pricing matched up nicely with your operational model. They were able to make you a high priority and even went the extra mile and provided onsite assistance when necessary.

But what happens if they’ve grown to the point where they’re unable to prioritize your needs? A lot of that dedicated attention you used to get fades away. Meanwhile your ERP platform itself starts evolving into something that no longer matches your business model or fits your budget. Additionally, what happens if key team members who support your business move on and leave, taking valuable knowledge about your business with them? you’re losing those people who are knowledgeable about your business, and spending too much time teaching new vendor contacts about who you are and what your business is about.

3. Your Business is Growing Too Quickly

Conversely, perhaps your company is growing rapidly — adding new products, markets, or departments — and the smaller vendor you chose a year ago can’t keep pace. Maybe they don’t offer the features or analytics you need to manage your newly expanded supply chain or changes in complex resource allocations.

Some vendors try to convince customers that they accommodate “any size business,” but in reality, most ERP solutions are better suited toward one end of the spectrum or the other, either large enterprises or SMBs. If your gut tells you it’s time to find a vendor better suited to handle your operating model, start comparing other solutions.

4. Lack of Industry Knowledge

A helpful vendor does more than just set-up your system, work out bugs and make sure their system runs runs smoothly; they should also act as your business consultant, either formally or informally, to make sure you’re receiving the right modules, upgrades and integrations based on your industry. They should also be able to offer best-practice ideas based on your business and process needs.

If you’re vendor doesn’t have direct knowledge of your industry, and if this is impacting the quality of service you receive, it may be time to look elsewhere.

5. Guidance Becomes Sales

Cross-selling and upselling definitely have their place in a vendor/customer relationship. Companies should always be aware of new products, services and trends that can improve processes and better serve the business bottom-line. But there’s a big difference between awareness and value and just a plain attempt to squeeze more money from a long-term customer.

You’ll know this is a problem when every call and e-mail turns into a sales pitch for more. Your relationship has gone from mutually beneficial to one of exploitation.

6. Declining User Experience

When looking at your current system, how much time does your team spend working “around the system?” Do they spend their days downloading spreadsheet data to work off-system? Are they manually creating processes to make work easier? Are they skipping over processes? The ultimate goal of any ERP system should be to enable a business to operate at top efficiency; reducing workloads, decreasing costs and needed manpower. Yes, today’s modern ERP systems offer advanced functionality that could prove frustrating to some of your employees and there’s always a learning cure. But ultimately, if your team is not using your ERP system to do their jobs, then it becomes useless to you.
If you’ve noticed a steady decline in user experience as your current solution ages, and your vendor has no solutions, updates, or new integrations planned, it may be time for a change. An ERP system supports so many different aspects of your business, you can’t afford to use something outdated and inconvenient.

If it’s time to switch ERP software providers, you’ll likely notice more than one of these signs. Your provider should be dedicated to supporting your business needs, providing reliable support, and maintaining a cutting-edge platform. If they aren’t, every minute you waste is productivity lost and customers under-served. Now may be the time to consider a change.

If a change to your ERP software and business processes is something you’re thinking about Technologies International, Inc. can help. We’ve been working for more than 20-years exclusively with manufacturing and distribution companies to help them through the change process with new software, updated business processes and solutions that help drive maximum ROI. Feel free to check out our website at https://www.tech-intl.com or give us a call at (909)-614-1416.