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Is your ERP holding your Manufacturing business back? Most of the ERP does.

What if your ERP actually understood manufacturing? Most of the ERPs Don’t.

Are you sure of ROI on your ERP investment in 6 to 12 months? Most of the ERPs won’t.

Though ERP has been around for the past 40 years, the Indian manufacturing market has started considering ERP seriously only after 2017, the implementation of GST. As per law, now the Auditors are also made liable for the errors in the bookkeeping and accounting. That too after implementation of Audit Trail, E-Invoicing, E-way bill and returns filing within 10 days of the month closure has increased the need for the correct data multifold.

Indian Manufacturing Industry’s business flow and statutory requirements are completely different as that of the global. So, many global ERP systems had to undergo huge customisation before putting the system into real use. Also in recent times, the manufacturing industries are trying popular CRM systems with heavy customisation to meet their business requirements. This cost and time overrun is a major factor for either partial implementation or failure of many ERP projects. Unsuccessful end-to-end digital transformation will land enterprises with usage of software + excel sheets. This will have a huge negative impact on business operations, especially not meeting the customer promise. 

Added to this all sizes of Industries are also very careful in their ERP spend. We have implemented for over 160 clients.

We also have a splendid case study of a Global manufacturing Industry shifted from a large ERP to Syscon ERP System. We have implemented COGS, COGM, US GAAP accounting and Global reporting. Though this is not a high number we were very careful in building deep features, Implementation and support methods to ensure friction free transition.  

Case study

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Parameters Most of the Competition Syscon Cronus – Plug & Play ERP 
Feature-fit 60 to 70%  98 – 99%
Code base OEM scope + Multiple partner versions for the customisations One single code based across all customers. 
Customisation of ERP / CRM 30 to 40% 1 or 2%
Implementation time 10 to 14 months 6 to 10 weeks
Implementation support On-site On-line, Whatsapp group
https://www.sysconcronus.com/service/ 
Price Unaffordable Affordable Starts at 1,999/user/month on Cloud – 14 days free trial.
https://www.sysconcronus.com/pricing/ 
ROI  Not sure 16 months max.
AMC for On Premise Collects 2 years in Advance 1st year no AMC Applicable from 2nd Year onwards 
Deployment From 2027 only Cloud (Large ERPs) Both On-Premise and Cloud
Upgrades Available only on the 60 to 70% of the OEM version 100% Since partners and consultants take care of Pre-sales, Sales,  Implementation and support not Customisation.
Mass deployment May not be possible due to Product, Customisation Possible
Success rate 25 to 45% as per global studies 90%
 

The is a google search result: “ERP Failure rate”

Due to this failure, many manufacturing industries have either gone back or settled down for theie excel sheets and accounting softwares.

🌟 Highways to Success Often End at Dead-Ends: Why the Right Choices Matter? 

Implementing an ERP system is to get on to a highway—smooth when you’re on the right path but can lead to a dead-end if you make the wrong turn. Here’s where businesses often go astray:

Customised Accounting software, Customised CRM systems, Customised global and Open source ERPs, Low code No code Custom development ERP systems. Invariably all these choices do not help the industry to meet their objectives.  Software development is not the business of the manufacturing industry. It will suck their limited energy and can frustrate their top management  teams with endless efforts with no tangible business benefits.

🚧 Popular ERP ≠ Right-Fit ERP: Choosing an ERP because it’s popular doesn’t mean it’s the best fit for your organization’s unique needs.

⚙️ Features vs. Customization: Focus on essential features, not endless customization. Over-customizing can lead to unnecessary complexity.

🔄  Cost: Cost of the ERP project includes Software, Hosting, Training and Implementation, System Admin, Project Management. If the total cost is exorbitant, then ROI will be a distant dream.  

🛠️ Project Management Pitfalls: Entrusting project management to internal teams can lead to ego clashes and derail the project. Expertise matters.

🔍 Internal Audits: Neglecting data accuracy and duplication checks can undermine your entire system. Regular internal audits are crucial.

🔄 Change Management: Shift from people-dependent processes to system-dependent ones. Embrace change management to ensure a smooth transition.

🔍 On-going support: ERP system needs regular upgrades to cater the growing business needs as well as change in Govt’s change in statutory requirements.

Success lies in making informed choices. Avoid these pitfalls to keep your ERP implementation on the highway to success! 🚀 Please don’t hesitate to schedule a call with us.

 

S. Vijay Venkatesh

Author S. Vijay Venkatesh

The author of this article S, Vijay Venkatesh is the MD and CEO of Syscon Solutions. He has put togethar over 4 decades of Manufacturing Industry & ERP experience. At Syscon he has handled over 150 ERP implementations for various verticals manufacturing industries.

More posts by S. Vijay Venkatesh

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