Stop Blaming Your ERP Software: The Real Problem is Implementation

Bottom Line Up Front: 70% of ERP implementations fail while manufacturing plants struggle with worsening staffing shortages. The companies that break this cycle focus on proper implementation and optimization rather than chasing new software solutions. Here's how to turn your ERP challenges into competitive advantages.

I recently worked with a plant where the plant manager was tracking production on spreadsheets while their million-dollar ERP system sat there doing nothing but slowing everyone down. Sound familiar?

The CEO was ready to scrap the entire system and spend another million on something new. Instead, we showed them how to properly implement what they already had. Today, six months after we finished: 25% higher output with the same headcount they were struggling with before.

This isn't unusual. Manufacturing faces a perfect storm: ERP implementations that don't deliver promised results while plants deal with staffing shortages that continue to worsen. But forward-thinking plant managers are turning both challenges into operational advantages.

The Crisis: When Poor Implementation Meets Staffing Reality

After 20+ years implementing ERP systems, I can tell you exactly why most fail, and it's usually not the software.

The Real Failure Rate: About 70% of ERP implementations fail to deliver what was promised. That's not a software problem—it's an implementation, training, and change management problem. Meanwhile, staffing shortages are industry-wide and getting worse. Some plants I work with are missing 30-40% of their ideal headcount. Others are in crisis mode, trying to operate with staffing shortfalls approaching 50%.

Here's what makes this dangerous: these problems compound each other. When your ERP implementation fails, you still have all the same staffing problems, plus frustrated employees dealing with broken systems, manual workarounds eating up time, and constant training cycles because people leave when technology makes their jobs harder instead of easier.

Why Implementations Actually Fail

I worked with a large manufacturing conglomerate with 11 companies where the ERP publisher's own delivery team, along with other consultants, had been working for two years. Multiple consultants, tremendous experience, millions spent. Complete disaster.

The pattern I see over and over:

• Vendors make promises they can't keep. Sales representatives are trained to sell what they have, not necessarily what you need. When consultants or sales reps are tied to a single platform, they'll position their solution as the answer regardless of fit. This is why working with vendor-agnostic partners becomes critical—they can recommend what actually works for your specific situation.
• Companies skimp on implementation to save money. You negotiate consultant costs down so much they cut hours in half. Maybe it needs 1,000 hours, but you negotiate it down to 500 and expect to make up the difference. You're asking a team to implement something they've never done before with insufficient resources.
• No documentation of current processes. If you don't document your current state, you have no idea what "done" looks like. I walk into plants where nobody can tell me how they actually do things today.
• No buy-in from people who use the system. If workers find out in a group meeting that their job is changing, you've potentially lost them. They need to be part of the process from day one.

The Hidden Costs: You're paying $60,000-$80,000 annually for software licenses, maybe another $30,000 on modules you never implemented. Your plant manager burns hours weekly training new people on processes that don't work. You're losing production time, dealing with quality issues, and watching competitors who figured this out pull ahead.

The Right Implementation Methodology

The difference between success and failure isn't the software. It's the methodology. Here's what actually works:

1. Strategic Evaluation and Planning

This involves thoroughly understanding your organization's current situation, identifying strategic goals, and pinpointing exactly where optimization can provide solutions. We document what every person actually does from clock-in time—not what the manual says they should do, but what they actually do. Where are the bottlenecks? How many times does someone touch the same product? What data gets captured manually that the system could handle automatically?

This phase includes comprehensive gap analysis to identify differences between your current state and desired operational state, highlighting exactly where the system needs configuration or process changes.

2. Solution Architecture and Workflow Integration

Based on the strategic assessment, your ERP system gets configured to fit your specific workflows, processes, and reporting requirements. This isn't about forcing your processes to match the software—it's about making the software work the way your business actually operates.

We map out how the optimized system integrates into existing business processes, ensuring smooth transitions with minimal disruption. The goal is creating one source of truth where all departments operate from the same platform with connected workflows.

3. Methodical Implementation with Buy-In

We move deliberately because "slow is smooth, and smooth is fast." Rushing through implementation creates confusion and resistance. Our approach includes:

• Weekly status meetings with senior management during implementation
• Monthly meetings with executives
• Power users involved in the process from day one
• Direct conversations with workers asking: "What can I do to make your job easier?"

When employees help design the solution, they own it. When they own it, they'll make it work. We meet every week during implementation to ensure every task is completed before go-live.

4. Knowledge Transfer and Ongoing Optimization

The implementation partner's job should be working themselves out of a job by building your internal capabilities. This means providing comprehensive documentation, training multiple people (not just key personnel), and creating systems that survive employee turnover.

Performance gets continuously monitored to identify optimization opportunities, and user feedback drives ongoing refinements to ensure the system evolves with your needs.

Building Operations That Thrive With Staffing Constraints

Staffing shortages force the optimization that should have happened during original implementation. When you can't find enough people, you must make current employees more productive. When every person counts, you can't afford manual processes or poorly implemented systems.

Standardization as Survival Strategy

With reduced staffing and ongoing turnover, you need processes that work the same way regardless of who's doing them:

• Touch screens instead of complex data entry
• Automated time tracking instead of manual timesheets
• Quality modules that guide inspections instead of relying on experience
• Inventory control that actually tells you what you have and where

Real Example: I just finished with a Kentucky plant that increased output 25% with the same headcount. How? We eliminated unnecessary "touches" of products, automated data capture so workers weren't doing paperwork, and created standardized processes so new employees could contribute quickly.

The Documentation Advantage

Companies with comprehensive documentation see:

• 40-50% faster onboarding of new employees
• 25-35% fewer quality issues
• 50-60% reduction in operational disruption from turnover
• 30-40% lower ongoing support costs

Effective implementation creates "train the trainer" programs, but spreads knowledge across multiple levels. You're not just training the department head but training someone in HR so there's backup when people leave.

Technology Solutions You Already Own

Your existing ERP probably has capabilities you don't know about. I see plants where workers still clock in manually, not knowing the system can track time automatically. They're building spreadsheets when the ERP can generate the same reports.

The biggest impact comes from inventory control. I walk into facilities with three floors of bins (half unlabeled) where the CEO can't tell me what products they have. That's $30 million in inventory sitting on shelves that you can't sell because you don't know you have it.

How to Choose the Right Implementation Partner

Here's the uncomfortable truth about most ERP consulting firms: their business model depends on you needing them forever. They make money from ongoing support, additional modules, and fixing problems they could have prevented.

Typical Consultant Approach:

• Minimal documentation so you have to call them back
• Focus on getting the system "working" rather than optimized
• Push additional modules and upgrades for recurring revenue
• Train only key personnel, creating single points of failure
• Vendor partnerships that influence recommendations even when not in your best interest

The Right Approach: Look for implementation partners who aren't tied to vendor partnerships and don't get kickbacks from software companies. Their recommendations should be based purely on what's best for your operation, not what generates commission.

When you complete a project with the right partner, you should receive:

• Complete process documentation with step-by-step procedures
• Training materials you can use to onboard new employees
• Troubleshooting guides for common issues
• Contact lists of who to call for specific problems
• Maintenance schedules and optimization recommendations

Your implementation partner's success should be measured by how well you can operate without them, not how dependent you become on their services.

Self-Assessment: Is Your System the Problem?

Before spending money on new software, diagnose whether the issue is the software, implementation, or processes:

Red Flags of Poor Implementation: □ Workers are building spreadsheets outside the system □ You're paying for modules you've never used □ Different departments use completely disconnected processes and systems □ No one can explain your current processes clearly □ Training consists of "figure it out as you go" □ You have no documentation of procedures

Questions for Implementation Partners:

• How have you handled similar implementations that failed?
• Can you provide references where implementations succeeded using your process?
• What specific documentation will you provide?
• How do you ensure knowledge transfer to our team?
• What happens if key people leave during implementation?
• Are you tied to any vendor partnerships that might influence your recommendations?

ROI Reality Check: Properly optimized existing ERP systems typically deliver 30% better ROI than new implementations. Why? You're building on knowledge and processes that already exist instead of starting from scratch.

The key is understanding whether you have a software problem or an implementation problem. Most of the time, it's implementation. When existing systems get properly optimized, companies typically see results in 3-6 months instead of waiting 12-18 months for a complete replacement to show benefits.

When New Software Makes Sense: Sometimes you do need new software. If your current system truly can't handle your requirements, or if you're on an obsolete platform that's no longer supported, replacement might be necessary. But make that decision based on facts, not frustration.

Measuring Success in the New Reality

Key performance indicators for staffing-constrained environments:

• Time to productivity for new hires
• Quality consistency across shifts and operators
• Reduction in manual data entry and paperwork
• Automated processes replacing manual workflows
• Knowledge retention despite personnel changes

The long-term competitive advantage: operations that get stronger despite constraints. When staffing eventually stabilizes, companies that optimized with reduced headcount will dominate with normal staffing levels.

Your Action Plan

Start with an honest assessment. Before spending on new software or additional modules, understand whether your existing system can do what you need. Most core issues can be identified quickly through proper diagnostic processes.

Focus on proper implementation before technology replacement. Most companies don't need new software but need current systems implemented and used effectively. Make sure you've properly diagnosed the root cause before spending another million dollars.

Build documentation that survives turnover. Create procedures that work regardless of who's following them. Invest in programs that build internal capability. Preserve institutional knowledge through systematic documentation.

Work with vendor-agnostic partners. Choose implementation partners whose recommendations are based on what's best for your operation, not vendor relationships or commission structures.

Think long-term resilience. Companies that turn staffing challenges into competitive advantages build operations that scale efficiently despite reduced headcount, maintain quality consistently, and adapt quickly to changing conditions.

The Bottom Line

Most manufacturing companies are sitting on systems that could solve their problems, but they're not implemented or used effectively. Meanwhile, they're considering spending another million on new software when proper implementation could deliver better results.

Here's my challenge: Before you buy anything new, before you blame your current system, before you decide the grass is greener somewhere else, make sure you've properly implemented and optimized what you already have. The issue is more often the implementation than the software itself.

You might be surprised by what your system can actually do when it's set up right.

Rick Saddler brings over 10 years of hands-on ERP implementation experience to manufacturing companies. Based in St. Louis, Missouri, HMS specializes in business process optimization, training services, and cloud migration strategies that help manufacturers do more with less while building sustainable operational excellence.