Implementing a new Enterprise Resource Planning (ERP) system is one of the most important investments a manufacturing company can make. If it’s done right, it can improve functionality across the organization, supporting growth well into the future. But if the project isn’t successful, it becomes an expensive, frustrating endeavor that never lives up to expectations and doesn’t deliver a return on the investment. One of the main issues that stands in the way of companies realizing maximum value from their ERP software is unresolved business process issues that get carried over into the new ERP platform.

ERP systems don’t fix broken processes. Without addressing the underlying issues, ineffective processes just get automated. If workflows are unclear, inconsistent or require manual processes, ERP will just make those problems harder to address later. That’s why it’s always best to invest time in business process analysis before starting the ERP implementation. Putting in the time to improve business operations upfront lays the foundation for a smoother implementation, better user adoption and stronger results in the long-term.

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Key Process Pain Points to Address Before ERP Deployment

Unclear or Undocumented Processes

Known as “tribal knowledge”, critical workflows in many manufacturing orgs aren’t captured in process documentation; they just live in someone’s head. Whether it’s scheduling decisions, inventory adjustments or pricing approvals, asking “how does this process work today?” may get a variety of answers depending on who you ask.

This is where a structured business process analysis and mapping becomes critical. This step provides a way to visualize processes in a new way. Before the ERP selection even starts, manufacturers should map their core business processes end-to-end, identify any gaps or inefficiency, and plan out how the work should be done. Creating comprehensive documentation through process mapping can greatly improve alignment around needed functionality in the new system and reduce confusion during the implementation process.

Inconsistent Processes Across Departments or Locations

Analyzing processes is especially important if your new ERP will be implemented across departments or locations. Often, different plants or business units may perform the same task differently. Through careful business process analysis, you can identify whether this variation adds value, or just complexity.

Applying business process analysis gives your organization a chance to decide ahead of time which processes will be standardized and why. Without this type of alignment, ERP projects can end up being a debate on whose process is “right” and not about what will support a system that serves the business.

Poor Data Quality and Master Data Issues

ERP software systems depend on clean, accurate data to effectively manage core business processes. If key data such as BoMs, vendors, customers, and inventory records contain duplicates, outdated or error-filled information, users will quickly lose trust in the system.

A thorough business process analysis can shed light on where these data issues start; it could be from manual processes, unclear data governance rules, or lack of ownership. Before embarking on the ERP project, manufacturers should review key master data, clean up duplicates, define standards, and establish basic data governance and lay the foundation for a successful ERP implementation.

Manual Workarounds and Shadow Systems

Manual processes for business functions, and workarounds to the legacy system can highlight deeper problems with workflows. They may keep things moving, but they also hide inefficiencies and create risk.

Rather than simply moving these paper-based manufacturing systems and workarounds to the shiny, modern ERP system, manufacturers should use business process analysis methods to dive into why they exist in the first place. Are processes unclear? Approvals too slow? Responsibilities split across teams? Addressing the root causes before moving to a new ERP solution makes it much easier to design clean efficient processes in the new system.

Lack of Cross-Functional Alignment

ERP systems touch departments across the company, from Sales to Operations, Purchasing and Finance. While they’re all connected, they can often operate in silos when it comes to business process management.

Before starting the ERP project, it’s important to get these key stakeholders together to align on goals, key performance indicators, and priorities for the new system. Agreeing on what success looks like—on-time delivery, inventory accuracy, margin visibility—helps guide system decisions and reduces conflict during implementation.

Unclear ERP Success Metrics

Speaking of success, if your company hasn’t defined how it will measure whether the ERP project is successful, it’s harder to define functionality requirements, implementation milestones or to evaluate results after go-live. Success might be defined by outcomes such as reduced inventory levels, improved schedule adherence, or faster financial close.

Through business process analysis, manufacturers can link process improvements to measurable business outcomes. Defining a small set of meaningful KPIs before the project starts provides a clear target and helps keep the ERP implementation focused on real business value.

"The reason we start the methodology with BPI is...we're trying to define the future state that the business wants to get to, and that gets you to the right vendor, the right systems integrator."

Joseph St. Amant | Senior Consultant, Ultra Consultants

Undefined Exception Handling

Many companies design processes around ideal process management but rely on ad hoc decisions when something goes wrong. For example, what happens when material is short, or when a customer changes an order mid-production?

ERP systems need clear rules for handling exceptions. Business process analysis helps identify common exceptions and define how they should be handled. Without this clarity, users will bypass the system when reality doesn’t match the plan.

Limited Change Readiness and Adoption Planning

Beyond changing operational processes, deploying ERP software also changes the way people work. If teams aren’t prepared for those changes, the result is resistance and poor adoption of the new ERP solution.

As part of the business analysis of current processes, manufacturers should evaluate how and where work will change, as well as who will be affected. Addressing change readiness early on in the project makes for a smoother transition and improves the chances of long-term adoption. Create a detailed plan for change management outlining leadership alignment, communication strategy, and training needs for each stage of the project and beyond.

An Over-Customization Mindset

Some companies begin their ERP search thinking that the new system should mimic their current processes exactly. But this approach often leads to excessive customization, higher implementation costs, and cumbersome maintenance and future updates. Not to mention that simply transferring inefficient processes to the new ERP limits its effectiveness and return on investment.

Business process analysis provides an opportunity to challenge existing practices. Manufacturers should take a critical look at which processes serve the business, and which exist just because “that’s how we’ve always done it.” Being willing to adopt standard operational best practices where appropriate reduces complexity and improves sustainability.

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Building the Right Foundation for ERP Success

When envisioning a new ERP, it’s tempting to view it as the solution to long-standing operational problems. But ERP only reflects the existing strengths and weaknesses of your processes.

That doesn’t mean that everything has to be perfect before ERP implementation. But business process analysis creates clarity around what improvements and alignment needs to happen to ensure the ERP project is successful in driving your company forward and allowing for maximum return on your technology investment.

Ultra Consultants’ proven methodology starts with Business Process Improvement built on in-depth analysis of existing processes addressing the most effective way to improve your business processes.

Benefits of Ultra Consultants’ BPI consulting services: