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6 Reasons Why ERPs Fall Short in Supply Chain Management

ERPs (Enterprise Resource Planning) systems can be beneficial for supply chain professionals in streamlining operations, improving visibility, and enhancing decision-making.

However, according to Gartner 55-75% of ERP projects either fail or don’t meet their intended objectives. If you look at supply chains for example, these are highly complex areas of a business that require accurate data and insights in order to be able to make fast agile decisions.

ERP Supply Chain Management

In the realm of supply chain professionals, here are a few reasons ERPs may not fully meet their needs:

1. Lack of specialized functionality: ERPs are designed to cater to various business functions, such as finance, HR, and sales, in addition to supply chain management. This can result in a lack of specialized functionality specifically tailored to the unique requirements of supply chain professionals.

2. Limited supply chain visibility: While ERPs provide a centralized database for data management, they may not always offer real-time visibility across the entire supply chain. Supply chain professionals often require granular visibility into inventory levels, demand forecasts, transportation status, and supplier performance, which may not be readily available or easily accessible within the ERP system.

3. Inflexibility and customization challenges: ERPs can be highly complex and rigid, making it challenging to customize or adapt them to meet evolving supply chain needs. Supply chain professionals often require agility and flexibility to respond to changing market dynamics, adopt new technologies, and optimize processes. ERPs that lack customization options can restrict their ability to address specific supply chain challenges.

4. Integration issues: Supply chain management involves interactions with various external systems and partners, such as suppliers, logistics providers, and e-commerce platforms. Integrating these external systems with an ERP can be complex and may not always be seamless, resulting in information gaps and manual workarounds that hinder supply chain efficiency.

5. Inadequate analytics and reporting capabilities: Effective supply chain decision-making relies on robust analytics and reporting capabilities. ERPs may not always provide advanced analytics features and customizable reporting options that allow supply chain professionals to analyze data, identify trends, and derive actionable insights for continuous improvement.

6. Complex implementation and user adoption: ERP implementations can be lengthy, resource-intensive, and disruptive to daily operations. Supply chain professionals may encounter challenges during the implementation process, including data migration, training, and change management. If not managed effectively, these challenges can hinder user adoption and limit the system's effectiveness in supporting supply chain operations.

To address these limitations, organizations may complement their ERPs with specialized supply chain management software or leverage integrated platforms that offer dedicated supply chain functionality.

Take The Owl Solutions for example. We are a supply chain performance platform thatcollects, and harmonizes all the data points in your organization into one location in the cloud. The dashboard is user-friendly, and it’s up and running within a matter of weeks.

The cost and speed to market are much more reasonable than developing your own internal tool – and we meet with you monthly to review your supply chain performance and align key objectives with expected business outcomes.

If you’re looking for a cost-effective solution that requires no technical expertise from your team, and can be running within a few weeks, contact us here to learn more.

These solutions can provide enhanced capabilities tailored to the specific needs of supply chain professionals, offering greater visibility, agility, and analytical capabilities to drive supply chain excellence.

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