We looked at manufacturers from a range of industries, including food, electronics, aerospace, metalworking, and automotive manufacturing. Our research sheds light on:
- Reasons small manufacturers implement an ERP
- Average implementation timelines
- Benefits of ERP software for small manufacturers
- ERP implementation statistics at a glance
Here are some of the key takeaways from our research:
- 74% of small manufacturers lack operational visibility before switching to ERP.
- 64% rely on spreadsheets before adopting ERP software.
- 82% report improved inventory accuracy after implementation.
- 81% report reduced administrative work.
- The median ERP implementation time for small manufacturers is 2 months.
How we conducted the research
All of the case studies used for our research were based on interviews with MRPeasy customers.
- Sample size: 70 MRPeasy customer case studies.
- Company type: Small manufacturers.
- Company size: Median 15 employees; range 1–200 employees (Employee count known for 55 companies)
- Limitations: The sample is limited to MRPeasy customers who agreed to participate in the case study, so the results may overrepresent successful ERP implementations.
Why small manufacturers switch to ERP software
For every small manufacturer, the reason for switching to ERP software depends on different factors.
The most common issue, reported by 74% of small manufacturers, was a lack of visibility into operations. 54% of small manufacturers said they switched to ERP because they outgrew spreadsheets. In addition, 52% said that the administrative burden created by their systems led to ERP adoptions, 37% said multiple disconnected tools proved inefficient, and 35% pointed to lead time issues.
“Sage didn’t have the capacity for production scheduling – so to that end, we used Microsoft Excel,” says Chris Landen, Managing Director at Exacta Technologies. “The manual data inputs made the system prone to mistakes and we knew it was not scalable; finally, we felt we had reached a limit.”
Benefits of ERP implementation for small manufacturers
Benefits vary from business to business and depend on factors like company size, industry, and the specific problems they’re trying to solve. Here are the most common benefits of implementing ERP software for small manufacturers:
- 82% of small manufacturers said that ERP software improved inventory accuracy
- 67% said that production planning time was reduced
- 49% noted an improvement in cost visibility
- 43% reported improvements in lead time accuracy and quoting
In many cases, implementing an ERP system also had a noticeable impact on the customer experience. 36% of small manufacturers reported that customer trust increased after implementing an ERP, and 34% noted improvements in customer documentation.
Another benefit of ERP implementation is the reduction in administrative work and day-to-day stress.
- 81% of small manufacturers in our study said ERP software has significantly reduced administrative work
- 31% said ERP software has reduced day-to-day operational stress
“Even though it’s still relatively new, the benefits are already incredible. Time savings are enormous; the system makes everything so quick,” says Tony Green, Founder of Bradenham Preformed Wood Components. If we’d kept the old system, I don’t know how much time we would have lost scaling up."
How long ERP implementation takes for small manufacturers
ERP software is often associated with long implementation times, with large-scale systems often taking years to implement. Fortunately, software like MRPeasy can significantly reduce implementation time for small manufacturers. Of the 70 customers in our study, 46 of them reported their implementation timelines. Here’s what our research found:
- ERP implementation time ranged from 2 days to 12 months.
- The median implementation time was 2 months.
- Average implementation time was 14 weeks.
Implementation also largely depends on company size. Larger companies typically need more time for process configuration, data migration, and team alignment, and also have more employees to train, and more products, parts, and BOMS to manage. Here are the median ERP implementation times, based on company size:
- 10 or fewer employees: median implementation time of 1 month
- 11–25 employees: 2 months
- 26–50 employees: 3 months
- 51+ employees: 6 months
Summary
Our research suggests that ERP implementation is usually driven by practical operational pressure rather than broad digital transformation goals. The most common benefits were improved inventory accuracy, reduced administrative work, faster planning, and better visibility into costs and lead times. The median implementation time for MRPeasy clients was 2 months – a staggering reduction compared to traditional ERP.
For more information, please visit www.MRPeasy.com.
