Decide when to move to an ERP

Who this is for

Founder led lower-middle market companies with 5 to 50 million in annual revenue that have grown past spreadsheets and manual handoffs.

The quick answer

Make the move when orders, inventory, production, and finance need one shared view and spreadsheets can no longer keep up. Triggers include multi site operations, poor stock accuracy, slow closes, and manual handoffs that cause errors. Start with a clear list of must haves and a staged rollout plan.

The method in seven steps

Confirm the trigger
Note the pains you see. Late orders, stockouts, long close time, and many re key steps. If two or more are present, you are close.
Write the must haves
Orders, inventory, production, purchasing, finance, and basic reporting. Add light CRM or service only if you will use it on day one.
Map the data model
Products, customers, suppliers, locations, and chart of accounts. Write the single source for each.
Choose a fit for your stage
Favour systems with strong distribution or light manufacturing out of the box. Avoid custom work until the base runs well.
Plan a staged rollout
Phase one covers order to cash and procure to pay. Phase two covers production planning or field service. Later phases add advanced reporting.
Clean data before cutover
Fix items, units of measure, open orders, and supplier lists. Assign one owner for each object.
Run a tight go live plan
Train users with simple playbooks. Freeze changes for a short window. Set a hypercare period with a daily standup and quick fixes.

Example

A twenty three million distributor moved to ERP in two phases. Order to cash went live first and the close fell from fifteen days to eight. Phase two added light manufacturing steps which cut rework.

Pitfalls and fixes

Buying features you will not use. Start with must haves.
Customizing early. Use standard flows first.
Dirty data at go live. Clean before you cut over.

Checklist

Triggers documented
Must have list by process
Data owners named
Rollout plan by phase
Training playbooks and hypercare plan