SGH Solutions
Technology

Why your old ERP system lies more often than it helps

By Anna Kowalczyk, Systems Analyst·October 5, 2024·8 min read

Last Tuesday, we were with a client near Tychy who saw 147 valves in the system, while only 4 units were actually on the shelf. Such errors aren't magic; they're the result of using tools from before the smartphone era. The shop floor must earn, not stand idle, and incorrect computer data is the easiest path to downtime.

A system from 2017 doesn't understand your floor today

Most small plants in Silesia implemented their first serious software around 2016 or 2017. Back then, it was enough because there were fewer orders and inventory turnover allowed for manual stock checks once a week. Today, with 47 active orders simultaneously, the old system simply can't keep up with the pace of work. Data entered in the morning only appears in reports after 6 hours, making the production planner see a world that is already long outdated. It's like trying to drive a car while only looking in the rearview mirror.

The problem is that old software forces employees to click too much. Instead of attending to the machine, an operator must spend 14 minutes entering codes from a piece of paper into a table that keeps freezing anyway. As a result, people start keeping their own notes in notebooks or private Excel files. We then have a situation where three different truths about material levels exist in the company. Numbers don't lie if you know how to read them, but in an old system, these numbers are entered with errors from the very start because the interface is unreadable for a human after 8 hours on a shift.

We see this regularly during audits in Katowice and the surrounding areas: the older the system, the more 'ghosts' in the warehouse. These are all the items that glow green in the computer but haven't been physically seen since March 2023. Such a situation costs an average of 4,300 PLN per month just in time wasted looking for parts that don't exist. The system should make work easier, not add more clicking, and old database architecture simply bloats and slows down with every passing year of use without proper maintenance.

The shop floor must earn, not stand idle, and incorrect computer data is the easiest path to downtime.
A system from 2017 doesn't understand your floor today

Why the warehouse has a life of its own and how to change it

The main reason stock levels drift apart is the lack of real-time integration. If your warehouseman issues goods at 10:15 AM and the office only finds out after lunch, the company spends several hours making decisions based on lies. In one plant in Gliwice we've worked with for 3 years, the loss due to an incorrect material order amounted to 12,400 PLN in a single quarter. They ordered sheet metal that had supposedly run out, while it was lying under a pile of other pallets because the system didn't register its movement.

Another issue is errors when entering units of measure. ERP systems from a decade ago often fail to convert linear meters to kilograms or units automatically. An employee has to calculate it on a calculator and enter it manually. It only takes one person to misplace a decimal point, and suddenly 15.5 kg becomes 1.55 kg. At Silesia Growth Hub, we fixed such a process for a component manufacturer, shortening invoice verification time from 4 days to 1.5 days by eliminating these manual calculations that generated the most mistakes.

The solution isn't always a new, expensive system. Often, it's enough to add a simple barcode scanning module, which costs a fraction of a new license. Deploying simple readers for 5 warehouse employees allows for a 31% reduction in errors within the first two months. No more manual data transcription isn't a marketing slogan; it's a necessity to avoid drowning in paperwork. If data doesn't enter the system the moment goods move, then that system is just an expensive notebook, not a management tool.

Why the warehouse has a life of its own and how to change it

A 150k license won't fix messy processes

Many companies fall into the trap of thinking that buying the latest software from a global giant will solve all problems. This is a mistake we've seen in at least 12 clients in the last year. If you have a mess in how information flows between the floor and the office, a new system will only speed up that mess. Before you spend 150,000 PLN on new licenses, check if your people even know what they are supposed to enter into the current program. Often, the problem isn't technology, but procedures created in 2012 that were never refreshed.

At Silesia Growth Hub, we make it clear: first we clean the process, then we choose the tool. Our team of 5 specialists spends the first few days with a client not in front of a computer, but on the production floor. We watch where the forklift goes and where the operator leaves the receipts. It turns out that in 19 out of 20 cases, the bottleneck is one specific Excel sheet where someone enters data 'roughly' because the system is too complicated. Simplifying a form by 4 fields can speed up work by 23% per week.

You can't afford for an ERP system to be just a cost. It must return money by eliminating mistakes. A good example is a small foundry where, after cleaning up the contractor and inventory databases, they managed to recover 3,800 PLN on customs documentation alone for a single shipment. It turned out the system was doubling fees because no one had cleared old entries from 5 years ago. Remember: the system should make work easier, not add more clicking. If you feel your program is fighting you instead of helping, it's time for an audit, not another expensive update.

Numbers don't lie if you know how to read them, but in an old system, data is often wrong from the start.
A 150k license won't fix messy processes

How to straighten out data in 11 days without stopping production

Many business owners fear ERP changes because they think it means a week of downtime and sales paralysis. In reality, the recovery process can be divided into small stages. We start with a 'critical' inventory – we don't count every screw, just the 12 most important items that generate 79.3% of your turnover. This gives a quick effect and immediately improves cash flow. In one workshop in Sosnowiec, it took us exactly 3.2 hours to catch a pricing error that was eating 4% of the margin on every finished product.

The next step is cutting out redundant functions. Old systems are often overloaded with options no one uses, which only slow down the database. Disabling 15 unnecessary reports that generated automatically every morning halved the server response time for our client. People stopped complaining that 'the computer is lagging' and started entering data more reliably because they didn't have to wait 20 seconds for every screen change. This is simple psychology for work at a machine – a tool must work instantly.

Finally, there's team training. We don't do boring lectures. We show a specific person at their station how to save 10 minutes a day with two keyboard shortcuts or a new table view. Our recovery plan usually wraps up in 11 business days spread over a month. This is enough to go from chaos to a state where the production planner drinks coffee in the morning and knows exactly how much material he has in stock without calling the warehouseman. If you want to know what this looks like in your case, we will prepare a written audit quote for you within 24h.