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ERP System Implementation: 3 Keys to Avoid Failure

Almost half of CPOs are investing in technology and digital transformation initiatives, largely to keep up with the competition. That said, Australian businesses face significant challenges in doing this effectively. The standout: Up to 70% of ERP (Enterprise Resource Planning) system implementations fail.

Optimise your ERP implementation for success | August Consulting | ERP System | Supply Chain Optimisation | Procurement | Procurement as a Service

Systems and digital transformation should be key enablers of efficiency and business improvement opportunities in procurement and supply chain management. But this can only happen when the systems are aligned with your business strategy.

So, how can you avoid ERP system implementation failure?

Get Clear on Your Business Requirements

Map your current operational state, strategic goals, key pain points, and differences across regions, sites, and categories. This lays the foundation for clearly defining a business case for an ERP project and how a proposed solution will meet the broader needs of your business.

It’s also essential to unpack the potential impacts of implementing an ERP system. Will the changes make processes easier and more efficient, or will they increase complexity, time, and resource requirements? The value vs complexity equation needs to make sense to ensure an ERP system elevates your procurement function and drives supply chain optimisation.

Leverage the Right Support

Three-quarters of ERP transformations fail to stay on schedule or on budget, and two-thirds have a negative return on investment. Add to that, outdated and poorly implemented systems become tedious legacy systems that prevent businesses from remaining agile in their industry.

Expert guidance around ERP product selection and implementation is essential to avoid becoming another failure statistic. The right support should offer strong ERP project governance, risk and issue management, and change management.

Leveraging the deep subject matter expertise of procurement specialists can help you shape and implement a best-fit contemporary solution that primes your business to meet current and future business objectives.

Strong Vendor Selection and Management

Vendors often say they can ‘do it all’ – this is why due diligence is paramount. Researching clients and sectors using a particular ERP system can offer insights into their experience with a system and the ease of implementation – for both out-of-the-box configuration and customisation.

When choosing an ERP vendor, consideration should also be given to reviewing commercial contracts, stakeholder obligations, and supplier management capability. Failing to approach vendor selection and management strategically will result in an inferior product that fails to deliver value.

Ultimately, digital transformation and process optimisation should be key areas of investment. Why? A well-executed and tailored ERP system can transform procurement and supply chain management by offering actionable insights and agility to react to a fast-paced market. 

August Consulting procurement specialists are experts when it comes to procure-to-pay processes. Our best-practice procurement services help empower procurement and supply chain teams to work smarter to generate time and cost savings.

Contact us via our website or LinkedIn to learn how we can develop a customised PaaS solution to improve your operational performance through strategically aligned ERP systems.


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