For most reasonably sized ERP systems, there are some simple indicators that an enterprise resource planning system is becoming overloaded. Once you've started to notice these symptoms, there are a few actions you can take. However, generally speaking, it is never a good thing to let such an important business system get to this point in the first place.
Overload symptoms in Enterprise Resource Planning:
- Your system is slow and has started to crash (more often): firstly, you need to establish whether this is not your server / environment which is causing this. Network overload and old / overloaded servers can make this happen too. Once these are ruled out, then you can look at your ERP software itself. Crashing and slow response are very good indicators that the system is being asked to work beyond its normal load. Two things you can think about here - is this happening at a specific time of the day / week / month? If so, then you might want to reschedule work so the load is more even. But if this is not the case and it is unexpected crashes or continuously slow, then you might need to consider a completely new system.
- It does not support the number of users you have or need: this is a typical issue for quickly growing companies who purchase ERP solutions which they simply outgrow. Some systems are specifically built for a maximum number of people and, once exceeded, you get to the point where you have wait to log in. For SaaS systems, you might have exceeded the number of seats you have rented and it is possible to simply increase the total number of seats.
- You are using spreadsheets and other work-arounds: this is a very typical of a system which simply can no longer cope or has such low level of functionality that it cannot support the business. Finance functions are normally very good at understanding the functionality they require. With ERP systems, this can be a bit more of a challenge because access might expand into operations and customer service too. As more and more seats use the systems, then the load goes up and the system response time goes down. As this happens, some departments find work arounds to allow them to complete their work. However, this is not always a good solution as information is lost to the system and the benefit of having a comprehensive view on how the business is operating is compromised.
- You are exceeding the maximum load for certain procedures: Most publishers will not tell you this, but their systems are optimised for certain numbers of different transactions. This is quite important because getting beyond this figure means you will almost certainly need to buy another, more powerful system. This can be critical for retailers or others that carry large amounts of stock because this is a typical overload. Another is for certain financial transactions - if you process a certain number of invoices or deal with large numbers of small suppliers, this can cause difficulties for some medium sized systems.
What are the options when this happens?
First thing to do is make sure it is the ERP system which is at fault.
Then check to see if the processing load can be time shifted to a lighter load time. An example of this is moving batch processing to happen overnight or at other low load periods.
If this is not possible then you might want to look at an upgrade to your current system or the purchase of a new system altogether. The benefit of a new system is that it will give you much more functionality at one stroke. There has been quite a bit of system development recently - especially with the increase in popularity of online sales channels for both B2B and B2C - and these will be better supported by a new system.
We know that replacement cycles for ERP systems is generally around the ten year mark. If you are nearing this, or suffering from some of the symptoms above, or if you are about to start the building of a new e-commerce website, then you would be well advised to look at replacing your system now.
Some other worrying signs you might want to look out for
- There is no longer an upgrade path or updates being made for your particular ERP system
- The publisher's / reseller's salesmen do not visit or call as frequently as they used to
- You are on first name terms with your systems support team
If you liked this blog then you might also like this previous blog too: http://inbound.itqsolutions.net/blog/what-to-look-for-in-an-e-commerce-solution