ERP migrations: 4 challenges for suppliers

by | Aug 28, 2024 | Data Management, Order Fulfillment, Order Management, Partners, Suppliers

It’s challenging for a supplier to go through an ERP change or migration, especially when you work with a large volume of major retailers. The process is complex and requires a strategic approach to manage various aspects, including integration, change management, cost, risk and more.

Suppliers often feel overwhelmed with the planning, execution and logistics required for a successful transition that realizes the benefits of a new or upgraded ERP system. Even when the process is well-planned, the sheer quantity of tasks required makes the ERP system change difficult. Additionally, challenges exist outside of the technical risks; different departments each face specific integration issues, which adds organizational complexity to the ERP migration.

It’s a complicated process, which means there’s a lot of risk involved—missing orders, broken connections, loss of important documents or high costs. Unfortunately, some companies can’t stay on their existing ERP if their current system doesn’t meet their needs or the technology is being sunset. Luckily, with the right support, you can ensure the typically heavy lift of an ERP migration is virtually painless.

Challenge 1: Integrations are complex

Whether you’re upgrading your existing ERP system or migrating to a completely new one, transferring all data seamlessly is a massive task that requires meticulous planning. Each department—be it procurement, logistics or finance—has unique needs, making data integrity across systems a challenge. An experienced partner can shoulder the burden, ensuring minimal disruption and safeguarding your critical day-to-day operations.

The new ERP system must be able to integrate with other existing systems (including your WMS and CRM). For larger suppliers, this is a massive project that leaves crucial data and operations vulnerable in the process. With so much at stake, it’s essential to have a partner who not only understands these challenges, but also provides the tools and expertise to ensure seamless integration across all systems.

Challenge 2: Existing processes must be shifted

Any new or upgraded ERP system must align with your current business processes. If it doesn’t, it should boost the efficiency of existing processes across all departments. A decision must be made: either customize the ERP to fit existing processes or adapt processes to fit the ERP’s capabilities.

For many suppliers’ IT departments, both options are daunting and require a lot of manpower. It’s also an easy way for something crucial to fall through the cracks, which can lead to anxiety and frustration as teams navigate these changes.

Challenge 3: ERP management must change

Since migrations or upgrades don’t occur that often, most suppliers are used to their existing ERP management processes. When migrations and upgrades do happen, employees must be extensively trained on the new system, which is a time-consuming and costly endeavor. It can also create stress and resistance among teams as they adapt to new workflows and systems.

Effective communication with a migration partner is critical for managing expectations and minimizing resistance to change. Transparency throughout the project ensures there are no surprises, helping to build trust and keep everyone aligned. This level of collaboration helps ease the emotional burden of change, making the transition smoother for all involved.

Challenge 4: Cost is a major factor

As a supplier, you must be prepared to move all data without sacrificing its integrity, which can be costly. Additionally, the new system must work well with existing systems.

Costs related to purchasing and setting up a new ERP system can add up quickly, especially when it comes to a customized solution. After the initial purchase is complete, you also need to budget for the ongoing or monthly billing for the new system. By partnering with an expert like SPS Commerce, suppliers can manage costs and prevent unexpected financial strain during a big transition.

For suppliers not equipped to handle a large migration in-house, partnering with a migration expert can save time, reduce errors and ultimately lower costs associated with the transition.

How can enterprise suppliers mitigate these challenges?

During an ERP migration, whether it’s an existing system upgrade or the adoption of a new system, suppliers must hire a partner to take care of the strategic aspects. It’s essential to choose a partner that has the knowledge and system expertise that will guarantee the new ERP can scale with your business.

It’s crucial that your partner can minimize disruptions to your day-to-day while integrating with your new ERP system. This partnership allows you to focus on your core business while ensuring a smooth and successful transition.

SPS Commerce helps suppliers seeking the next level of supply chain management within their ERP—without the pain of a system automation. SPS provides a faster, easier and more optimized way for enterprise suppliers to add more seamless supply chain management to your business, giving you the power to move with the speed of demand. As a bonus, we know how important it is for you to get back to business as quickly as possible, so our goal is seamless implementation to minimize your stress.

Why choose SPS Commerce as your ERP migration partner?

At SPS Commerce, we’re proud to have the people, processes and technology to ensure your supply chain management process is as seamless as possible. Plus, we support you through any growth your company may have, since our solutions are 100% scalable. You’ll never outgrow us!

The people: our experts lead the way. You’ll receive access to a dedicated team of experts that leads the process, insulates you from the complexities of varying trading partner requirements and minimizes testing. However, it doesn’t end there; our comprehensive training, service and 24/7 support ensures you’re never left troubleshooting on your own.

The processes: we’ve been proven successful, time and again. At SPS Commerce, we’ve used our years of experience to create our proven process and gain a deep understanding of retail requirements and system expertise. We streamline the entire order-to-fulfillment process, allowing enterprise suppliers to operate more efficiently across all fulfillment models and order channels.

The technology: solutions built for success. Our market-leading technology, expansive network and the tools we use to ensure your data meets your partners’ unique needs have been refined over more than 20 years, carefully structured to be capable of supporting all sales channels efficiently and effectively.

Looking for a partner to support your upcoming ERP migration? Get started today.

Molly Kelly
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