Determining the Implementation Time for Your ERP System

When a company launches a new ERP system When considering this, the question quickly arises: “How long does an ERP implementation take?” In this article, we discuss the key factors that determine the implementation time of your ERP system, along with a number of issues that can extend that time. In addition to a few examples of implementations at different types of companies, we’ll shed light on a possible reason why an ERP implementation sometimes takes longer than expected.

Factors That Affect Implementation Time

Many ERP vendors treat all companies the same and do not take into account factors that vary from company to company. Here are a few things your company should consider when developing an implementation plan:

• Impact on the Company
  The more significant the change this project brings to your company, the longer it will take. Employees need to learn how to use the new software, and that doesn't happen overnight.
• Number of locations
  If you operate in multiple locations, that also means it takes more time to configure everything.
• Number of countries
  If you operate in multiple countries, the implementation process will also take longer.
• Complexity
  The more complex and unique your business operations are, the longer the implementation will take.
• Internal competencies
  Are your employees willing to learn how to use the new software? If your employees have little experience, the process will take longer.
• Internal adjustment
  Operational staff must make it clear from the outset exactly what needs to be included in the ERP system. That way, there will be no surprises.
• Industry-Specific Solutions
  By choosing the right vendor that’s a perfect fit for your company, you can significantly reduce implementation time.
• Digital Maturity
  Your company may have been using the same spreadsheets for 30 years. In that case, the implementation will take much longer than it would for a company that’s already using somewhat more modern technology.
• Status of Current Operations
  If you've grown significantly in recent years through acquisitions and your operations have become a mess, the implementation will undoubtedly take longer.

How long would implementation take for your company?

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Some specific examples of implementation

Based on our experience, we know that an implementation at smaller companies takes about 4 months. For larger companies with fairly complex business processes, this takes about 18 months. Here are three examples from our experience: an implementation at a beverage retailer, a technical wholesale company, and an assembly company.

A first example is a beverage distributor with about five users. This beverage distributor has a single location with a retail store and handles its own deliveries to the bars. Functions such as purchasing, sales, inventory, point-of-sale transactions, transportation, accounting, excise taxes, and more are configured within the software. Through our industry-specific solution DrinkMaster 365 You can easily migrate from your current accounting software. In this case, the implementation will take about three months, from our first meeting until the new ERP system goes live. A concrete example where we achieved this is VDS Drinks.

A second example is a technical wholesale company with about 10 users. This wholesale company has two locations and handles its own transportation. Functions such as purchasing, sales, inventory, finance, transportation, etc., are configured in the software. Via our industry solution You can also configure items such as site-specific settings, specialized items, price management systems, etc. In this case, the implementation will take 6 months, from our first meeting until the new ERP system goes live. A concrete example where we implemented this is Gedimat Schelfhout.

A third example is an assembly company with about 15 users. Functions such as purchasing, sales, inventory, finance, transportation, and assembly are configured within the software. In this case, the implementation will take 9 months, from our first meeting until the new ERP package goes live. A concrete example where we implemented this is Technical Touch.

Choose the Right Partner

An implementation can sometimes take longer than expected. ERP vendors often fail to accurately estimate the implementation time. There’s too much focus on sales; they want to close as many deals as possible. We at Alistar We prioritize quality over quantity; the customer is always our top priority. Furthermore, an ERP vendor may have limited experience. This makes it difficult to provide an accurate estimate of the implementation time. Alistar has 22 years of experience in Dynamics 365 ERP software. Thanks to that experience, we can make an accurate assessment.

Conclusion

When it comes to an ERP implementation, there’s no such thing as a “right” answer. It’s important to determine where your company stands today and where you want to go in the future. Many companies start with an implementation timeline that’s never realistic. It’s important to define this clearly from the outset. Every company needs a different approach; it’s important that the implementation be tailored to how your company operates.