The modern machine shop ERP system is the backbone of manufacturing operations. But what happens when your legacy ERP can’t keep up with the demands of your growing business? If outdated or generic ERP systems become a bottleneck, hindering efficiency, growth, and profitability, it might be the right time for an ERP upgrade.
5 Signs It’s Time to Upgrade Your ERP
In this article, we explore the signs it’s time for an ERP upgrade and why your legacy system is holding you back. We also explore what to look for in an ERP that can help you modernize and thrive.
1. Your Legacy ERP Doesn’t Provide Real-Time Analytics for Throughput Optimization
Real-time data is no longer a luxury. It’s a necessity. If your ERP system can’t provide real-time analytics, you’re definitely missing out on critical insights that could optimize your throughput, scheduling, and overall efficiency.
One of the main challenges of using a legacy ERP system is the lack of real-time data and insights. This means you’re making decisions based on outdated information, which can lead to production delays, inefficient scheduling, and missed opportunities to improve throughput.
Real-time analytics empower you to:
- Optimize machine utilization and reduce downtime
- Improve scheduling accuracy to meet deadlines
- Identify bottlenecks and streamline workflows
- Make data-driven decisions that boost productivity and profitability
Real-time dashboards can provide visibility into every aspect of your operations, from shop floor performance to job completion rates. This level of insight ensures you’re always one step ahead.
ProShop customers report efficiencies of 30%, producing more with the equipment and people they already have. In our recent webinar, Same Team, Same Machines—More Profit: How One Shop Increased Revenue by 30%, Kyra Tillman, the owner of BTM Industries, shared her experience with ProShop. Her story is a testament to how the right tools can revolutionize a business, improve cash flow, streamline operations, and even make audits a breeze.
When BTM Industries implemented ProShop, the impact was immediate and profound. One of the most significant improvements was in cash flow management. With ProShop’s purchasing dashboard, Kyra could see in real-time which jobs needed materials and when they were due. This allowed her to prioritize purchases and avoid tying up cash in unnecessary inventory.
“Now the purchasing dashboard is my best friend,” Kyra said. “I can see in real-time what jobs need material ordered and when they’re due. I can prioritize and avoid purchasing material for jobs that aren’t due for months. It’s been such a savings for us.”
2. Your Old ERP Isn’t Built for Your Industry
Not all ERP systems are created equal! If you’re using a generic ERP solution, you’re probably struggling to make it fit the unique needs of your machining business. Generic systems often require costly customizations and still fall short of addressing industry-specific challenges.
Alternatively, an ERP system built by machinists for machinists is designed to handle the unique complexities of the machining industry. An industry-specific ERP speaks your language and aligns seamlessly with your workflows, eliminating the need for costly customizations or workarounds.
For instance, an ERP upgrade tailored to the machining industry includes features such as:
- Advanced shop floor control for real-time monitoring
- Job tracking that integrates seamlessly with your production processes
- Machining-specific workflows that eliminate inefficiencies
When your ERP is built for your industry, you can focus on what you do best: delivering high-quality machined parts. The system can take care of the rest.
Within a year of implementing ProShop, East Branch saw an increase in revenue, reduction in expediting fees and reduction in shipping fees. They also were able to increase their on-time percentage from 70% to 100%. They now see ProShop as being the backbone of their company.
3. Your ERP Claims to Be Paperless but Isn’t Truly Paperless
Many ERP systems claim to be paperless, but the reality is often far from it! In fact, while ProShop is completely paperless, E2 and JB² still rely on paper job travellers. This leads to higher inefficiencies, making it tougher to deliver items to customers on time. The ProShop Scheduling feature allows you to get up-to-the-minute statuses of jobs to make sure you stay on time.
If your system still relies on manual processes, physical documentation, or disconnected tools, you’re not reaping the full benefits of a paperless environment.
A truly paperless ERP system eliminates manual data entry, reduces errors, and streamlines compliance. A fully paperless solution ensures that every process, from work instructions to quality inspections, is digitized and integrated to create a seamless workflow.
Key features of a paperless ERP include:
- Digital work instructions that are accessible on the shop floor
- Electronic signatures for seamless approvals and compliance
- Integrated Quality Management System (QMS) that eliminates paper-based quality checks
By going truly paperless, you can reduce waste, improve accuracy, and create a far more efficient workflow.
G-Zero used JobBOSS prior to using ProShop. Before ProShop, they had difficulties maintaining a good schedule that would be accurate so that they could forecast their workload, and be positive on when they would get their items to customers. This prompted them to find a new ERP solution. They describe the Implementation process with ProShop as “very quick”. They love the real-time information and digital work instructions. Hear David Hannah, President, talk about how Proshop has improved their operations.
4. Your ERP Lacks an Effective Integrated QMS
Speaking of QMS, quality is non-negotiable in the machining industry. If your ERP system doesn’t include an effective Quality Management System (QMS), you’re likely struggling with compliance issues, rework, and inefficiencies.
Many legacy or generic ERP systems either lack a QMS entirely or require third-party integrations that create silos and inefficiencies. A modern ERP solution with a fully integrated QMS is designed to meet the highest industry standards, eliminating paper and disjointed tools.
With an integrated, paperless QMS, you can:
- Track quality metrics in real time to identify issues as they arise
- Manage non-conformance reports and corrective actions
- Ensure compliance with industry regulations
- Enable paperless QMS tracking and filing, eliminating manual paperwork, loss of documentation, and storage of files, improving accessibility, accuracy, and audit readiness
An integrated QMS isn’t just a nice-to-have; it’s a must-have for any machining business serious about quality and efficiency.
5. Your ERP has Rising Costs and Limited Customer Support
If you’re spending more time and money maintaining your ERP system than using it, it’s a clear sign that an ERP upgrade is way overdue. Legacy ERP systems often come with high maintenance costs, frequent downtime, and limited vendor support. Not only could this decrease efficiency while increasing costs, but it could actually put your business at risk!
It’s essential to look beyond the software itself and also consider the support ecosystem of an ERP. A robust, integrated system should include:
- Access to customer support and implementation; having a real human to guide you through implementation, answer questions, and provide personal support is absolutely essential to success
- Comprehensive learning resources, including a selection of training programs, tutorials, and certifications to help your team master the system and maximize its potential
- Networking opportunities to provide you with the opportunity to connect with other users in your industry, which can provide insights, business connections, and knowledge sharing
By choosing a system with strong support and learning resources, you can reduce downtime, improve user adoption, and ensure your business stays competitive.
If you’ve recognized any of these signs in your business, it’s time to take action. Upgrading your ERP system isn’t just about keeping up; it’s about staying ahead in a competitive industry and truly removing the limitations and roadblocks that are keeping your business from a higher level of success. If your current system falls short of doing everything ProShop can, it’s time to reevaluate. ProShop’s all-in-one solution includes ERP in addition to manufacturing execution systems (MES), and quality management and regulatory compliance elements that continue to capture users’ attention and industry awards.
ERP Upgrade: When Should I Replace My System?
Now that we’ve covered the ‘Why’, let’s look at the ‘When’. When should you replace your legacy ERP system? You should consider replacing your ERP system when you experience:
- Excess machine downtime due to long setup processes that your current system doesn’t eliminate or reduce.
- A lack of visibility throughout each organizational layer with real-time data for better decision-making.
- Data that’s challenging to capture and share from a centralized resource.
- Lost bids or jobs due to slow response time or a cumbersome estimate workflow in current systems.
- A need to switch between multiple systems to fully complete your business workflows.
- A lack of support for meeting quality and compliance standards inherent to your operations.
Why You Should Choose ProShop for your ERP Upgrade
Built by machinists for machinists, ProShop offers a modern, industry-specific ERP solution that delivers real-time analytics, throughput optimization, a truly paperless environment, and an integrated QMS. It’s the ultimate tool for machining businesses ready to grow and thrive. Don’t let your ERP hold you back—schedule a free consultation today to see explore your ERP upgrade and find out how ProShop can transform your business.
