ERPs have a long-held reputation in the retail industry for being risky and expensive; and we’ve known for a while that their implementation success rate is as little as 25%. But a recent Brightpearl report also found that ERP implementation not only costs a third more than predicted, but also takes an immense 200 days longer than planned.
Specialist appliance retailer, Snap Supply discovered this first-hand when it sought to uplevel its operating software at a point of rapid business growth – and, like thousands of other fast-growing businesses, opted for a well-known legacy ERP.
In a Brightpearl video interview, Nick Ernst, Co-Founder of Snap Supply explains how going for a big name ERP ended up costing the business heavily in time and resources that it simply couldn’t spare.
The sticking points:
- The cost of customizing the ERP kept increasing as it tried to fit Snap Supply’s unique retail workflows
- The ‘discovery process’ took a full six months – that’s before implementation had even begun
- The system wasn’t cloud-based but server-based (another extra cost), which meant staff at Snap Supply couldn’t work remotely.
“The cost was going into six figures just to integrate it with the company. Then there were all the extra costs for any form of customization,” Nick explains.
“For us, the huge thing was that you couldn’t work from home – you had to be in the building where the firewall is. So it just felt really outdated.”
Snap Supply switched from its legacy ERP for Brightpearl. With Brightpearl’s expert-led implementation and full team training, the brand was up and running within 120 days.
Watch the full interview with Snap Supply about how they bounced back from their nightmare ERP implementation experience.