SAP for Small Manufacturers: Why Most Implementation Partners Get it Wrong

Small manufacturers often face challenges when choosing an SAP implementation partner. Many partners focus on solutions meant for retail or service industries, which aren’t always suitable for manufacturing needs. In fact, Gartner estimates that 75% of all ERP projects fail to deliver the expected results. 

A good ERP for small businesses should address real needs, such as tracking WIP (Work In Progress), accurate Bills of Materials (BOMs), and reliable shop-floor reporting. Unfortunately, many SAP implementation partners miss the mark, leading to costly inefficiencies and missed opportunities.

Why Many Partners Get it Wrong

Many SAP implementation partners are more familiar with the processes in the retail or service industries, which differ from those in manufacturing.

1. Missing Real-Time Tracking

Manufacturers need to know the inventory status and work as it moves through the production process. Many partners fail to offer systems that track this in real-time. Without up-to-date information, businesses face delays and mistakes that can disrupt production.

2. BOM Management Doesn’t Match Manufacturing Needs

Bills of Materials (BOMs) help manufacturers track materials needed for production. However, many SAP solutions are built for simpler needs and don’t allow easy updates or management when products change. This can lead to material shortages or overstocking.

3. Lack of Proper Shop-Floor Reporting

Without clear reports from the shop floor, it’s difficult to understand production performance. Many partners fail to prioritize shop-floor reporting in their SAP solutions, which leaves manufacturers without crucial insights into how their operations are running.

4. Not Tailored to the Specific Manufacturing Process

Every manufacturing business has different needs. Many SAP implementation partners provide one-size-fits-all solutions that fail to address specific workflows, creating gaps that affect productivity.

5. Inadequate Integration with Existing Systems

Many SAP solutions are poorly integrated with other systems, such as legacy software or specialized equipment. This lack of integration can lead to data silos, requiring manual data entry or duplication of efforts, which increases the risk of errors and reduces productivity.

6. Poor User Adoption and Training

Poor user adoption can lead to ineffective use even with the best SAP system in place. Many partners focus on the technical side and overlook the importance of adequately training staff. Employees may struggle to use the new system correctly without proper training, leading to mistakes and inefficiencies.

7. Insufficient Support for Change Management

Implementing an ERP system like SAP involves significant changes in a business's operations. However, many partners fail to provide enough support for change management. Without guidance through this transition, employees may resist the new system, and the business could struggle to realize the full benefits of the implementation.

Questions to Ask Your SAP Implementation Partner

To make sure you choose the right SAP implementation partner, ask these questions:

1. How do you manage real-time WIP tracking?

Ask your partner how their WIP tracking solution will allow you to track materials and products as they move through production.

2. How do you handle BOM management?

Inquire about how their system supports creating, updating, and managing BOMs. It should allow you to track materials accurately and quickly adjust when needed.

3. Can the solution give you useful shop-floor reports?

Ask if the solution can provide up-to-date shop-floor reporting. This is vital for monitoring production and making informed decisions.

4. How does the solution handle inventory control?

Ask how the system tracks inventory levels and handles stock movements. Knowing how the solution ensures that you always have the right amount of materials is essential, avoiding shortages or overstocking.

5. Can the system support multiple production sites?

If your business has multiple locations or production lines, ask if the system can manage them all. You'll want to know if the solution can integrate data from different places and give you a unified view of your operations.

6. How does the system handle real-time production updates?

Inquire about how the system provides updates on production status and output. Real-time visibility into the production cycle helps you manage schedules and customer expectations more effectively.

Conclusion

Many SAP implementation partners focus on solutions that work better for retail or service businesses, but don’t address the real needs of manufacturers. 

Asking the right questions will help avoid inventory mistakes or production delays. A good ERP for small businesses will improve operations and allow the system to work effectively for your business.