According to an Allied Market Research report, the global Enterprise Resource Planning (ERP) software market will reach $78.4 billion by 2026. Factors fueling this growth are demand for operational efficiency and transparency and desire for data-driven decision-making.
As new brands enter the market daily and globalization and price pressures continue to squeeze tight profit margins, food, beverage, and supplements businesses need ways to gain a competitive edge. And many are turning to ERP software.
Here’s Gartner’s definition of ERP, “The ability to deliver an integrated suite of business applications. ERP tools share a common process and data model, covering broad and deep operational end-to-end processes, like those found in finance, HR, distribution, manufacturing, service, and the supply chain.”
While there’s no doubt that ERP solutions offer many benefits, especially to processing and manufacturing companies operating within the supply chain, there are limitations to these solutions that can prevent businesses from obtaining sufficient value from their investment.
Here are three limitations of ERP solutions:
ERP Solutions Don’t Deliver Supply Chain Transparency
If you want visibility into your upstream and downstream supply chain, every organization within your connected supply chain needs to use the same ERP solution. Your only recourse to achieve supply chain transparency is to convince all your vendors to adopt the same ERP software your business uses or consider it a strike against them regardless of their quality and performance. With hundreds of ERP solutions on the market, getting everyone to agree to one is unlikely, if not impossible.
ERP Solutions Lack Agility
ERP solutions force businesses into a one-size-fits-all approach. The complexity of these systems makes buying off-the-shelf components, items, or ingredients for a quick fix or interim solution tough to track, much less roll-out broadly. The static nature of ERP solutions contributes to low end-user adoption rates, as many prefer to circumvent these systems and work independently.
Cost and Complexity
Anyone who has been through an ERP implementation knows how difficult it is and how expensive it can be. There is significant work to manage employee onboarding, user access, and other administrative tasks to maintain ERPs.
Tap Into the Value of Your ERP Solution
Now more than ever, companies need visibility into the complete history of the ingredients, items, and materials that go into their products and the processes along the way. Consumers demand it, and regulators require it. But many companies still maintain islands of supply chain and product information spanning divisions and departments without a unified view of the business. TraceGains replaces these silos with a networked platform that connects departments with suppliers so teams can work smarter.
George Muller, VP of Information Services and CIO at C.H. Guenther, shared how integrating the company's ERP system with TraceGains made a positive impact on the business.
“Integrating with TraceGains has increased our visibility from QA to the plant floor to purchasing and across our supply chain. We now have one version of the truth which allows us to ensure our high-quality standards are met.”
Muller also addresses the elephant in the room – getting IT on board.
“TraceGains made integration easy. With systems projects, you often have to choose between an integrated option or best of breed. TraceGains is both. It’s an integrated solution with an open architecture that brings data from disparate systems into a single repository. The data seamlessly flows to other systems, reducing duplicate data entry and reconciliation issues, and gives us confidence in our data, so we can make informed decisions that will help us grow.”
With the launch of Formula Management, the TraceGains Networked Product Development suite is complete. TraceGains now provides a comprehensive suite of networked innovation, quality, and compliance solutions to consumer brands.
Companies can combine the data from TraceGains with their ERP solutions and other systems of record to gain a unified view of their products, data, and processes across the business and throughout the supply chain, no matter how dispersed or complex. When this happens, teams can respond quickly to market, customer, and supply chain shifts while offering substantial value to everyone in their connected supply chain.
Want to learn more? Check out this on-demand webinar to discover how a networked approach to product development, quality, and compliance allows teams to go from manual processes to automated results for better, faster innovation. For more information on the TraceGains Networked Product Development Suite, watch our on-demand webinar here.