Investing in ERP for Plastics & Packaging Manufacturers: 9 Questions CEOs, CFOs and COOs Should Ask

Investing in an ERP system is not simply about purchasing new software, replacing Excel spreadsheets or upgrading an existing management system.

For plastics and packaging manufacturers, it is a business decision that directly affects how the company manages raw materials, plans production, controls manufacturing costs, manages inventory and makes business decisions.

The right ERP system can help businesses connect departments, improve operational control and provide management with more reliable data.

But there is one problem: Not every ERP project delivers the expected results.

Even a system with hundreds of features can become an underperforming investment if the business has not clearly defined its objectives, properly assessed its processes or allocated sufficient resources for implementation.

So, what questions should CEOs, CFOs and COOs ask before signing an ERP contract?

Here are nine critical questions to help business leaders evaluate the requirements, risks and business value of an ERP investment for plastics and packaging manufacturing.

1. What Business Problems Does the Company Actually Need to Solve with ERP?

This should be the first question, even before looking for vendors or requesting software demonstrations.

Many companies start an ERP project because their existing systems are outdated, Excel spreadsheets can no longer meet their requirements or competitors have already implemented ERP.

But these are not necessarily compelling reasons to invest.

Look at the problems directly affecting manufacturing operations:

• Actual raw material costs frequently exceed standard costs.
• Scrap rates and material losses are difficult to control.
• Production schedules constantly change due to insufficient information about machine capacity or material availability.
• Inventory records in the system do not match actual stock levels.
• Product costing takes too much time and lacks accuracy.
• Management lacks sufficient data to evaluate the profitability of individual orders or production lines.

Not all these problems need to be solved simultaneously.

The company must identify which bottlenecks have the greatest impact on profitability, cash flow and customer satisfaction.

Question for CEOs:

If you could improve only three areas of your business operations over the next 12 months, which would you prioritise?

ERP should be selected based on these priorities, rather than a lengthy feature list that the company may never fully use.

2. What Is the Actual Cost of Continuing to Use the Existing Systems?

When evaluating an ERP investment, many CFOs focus exclusively on software and implementation costs.

That is only half the story.

Businesses must also calculate the costs generated by their existing management systems.

For example:

• Employee time spent on manual data entry and reconciliation.
• Raw material losses caused by inaccurate material consumption data.
• Working capital tied up in excess inventory.
• Overtime and emergency transportation costs resulting from inaccurate production planning.
• Profit margins affected by inaccurate product costing.
• Lost business opportunities due to delayed responses to customer enquiries.

Some costs can be measured directly. Others need to be estimated using operational data and reasonable assumptions.

The important thing is to understand the total cost of the current operating model rather than assuming that not investing in ERP means incurring no additional costs.

Question for CFOs:

If the company continues operating as it does today for another three years, how much will it pay for the limitations that already exist?

Sometimes, the most expensive costs are not listed in a software vendor’s quotation.

3. What ROI Can ERP Deliver, and How Long Will It Take?

ERP is a long-term investment. Therefore, businesses need a clear business case before approving the budget.

Do not simply ask ERP vendors how much they can reduce costs by a certain percentage.

Instead, ask them to identify measurable business indicators and explain how the system can improve them.

For plastics and packaging manufacturers, several KPIs deserve attention:

Business Area	KPI to Evaluate
Inventory	Inventory accuracy, inventory turnover
Production	Production efficiency, schedule adherence
Material management	Material consumption variance, scrap rate
Finance	Actual vs. standard production cost
Customer service	On-time delivery rate
Procurement	Purchase price variance
Management	Reporting cycle time

For example, if the company wants to reduce its scrap rate, it must establish the current rate, identify the causes of scrap, determine which data needs to be collected and define how improvements will be measured after implementation.

Similarly, if the objective is to improve inventory turnover, the company must understand how ERP supports material requirements planning, inventory management and coordination between procurement and production.

Do Not Confuse Expected ROI with Actual ROI

ERP performance depends on several factors:

• How well the software fits actual business processes.
• The quality of input data.
• Integration capabilities with existing systems.
• Employee adoption and system utilisation.
• Implementation scope and quality.
• The ability to measure KPIs before and after the project.

An ERP system does not automatically reduce costs simply because the company has purchased a software licence.

Technology provides the tools. Business results depend on how the company uses them.

Question for CFOs:

Which benefits can be measured, who will be responsible for tracking them, and within what timeframe does the company expect to achieve them?

4. What Is the Total Cost of Ownership (TCO) of ERP?

ERP investment costs go beyond the amount stated in the initial quotation.

Businesses need to evaluate the Total Cost of Ownership (TCO), meaning the total cost of owning and operating the system throughout its lifecycle.

Costs to consider include:

Cost Category	What to Evaluate
Software licensing	Subscription or perpetual licensing fees
Implementation	Consulting, configuration and deployment
Data migration	Data cleansing, mapping and migration
Integration	Connections with MES, machines, CRM, BI and other systems
Customisation	Additional development and modifications
Training	Employee training and change management
Infrastructure	Cloud services, hardware and network requirements
Maintenance	Support, upgrades and ongoing system administration

In particular, businesses should distinguish between system configuration and software customisation.

Some requirements can be addressed through standard configuration. Others may require additional development.

Excessive customisation can increase initial costs and make future upgrades and maintenance more complicated.

An ERP system with a lower purchase price is not necessarily the most cost-effective option over the next five years.

Question for CFOs and IT Directors:

What is the total cost of owning the ERP system over 3–5 years, and which additional costs could arise outside the initial contract?

5. Is the ERP System Really Suitable for Plastics and Packaging Manufacturing Processes?

This is a question COOs should never overlook.

Plastics and packaging manufacturing has its own operational characteristics, from injection moulding, extrusion and blown film production to flexible and rigid packaging manufacturing.

These processes may involve:

• Managing multiple raw materials, additives and blending ratios.
• Managing Bills of Materials (BOMs).
• Tracking scrap and reusable materials (regrind).
• Managing moulds, machinery and changeover times.
• Planning production based on machine capacity and resource availability.
• Managing quality by production batch.
• Tracing raw materials and finished goods throughout the production process.

An ERP system may be suitable for one manufacturing process but not necessarily perform equally well with another.

Businesses need to evaluate how the system handles real-world manufacturing scenarios rather than relying exclusively on a preconfigured software demonstration.

For example:

If an order quantity needs to be changed at the last minute, how can the system help assess the impact on material requirements, production schedules and delivery dates?

If actual material consumption differs from standard consumption, how can the company identify the causes and evaluate the impact on product costing?

If a finished goods batch needs to be traced, can the system link raw material information, production orders and quality inspection results?

Question for COOs:

Can the ERP system support real-world manufacturing scenarios, or does it only work smoothly when everything goes exactly according to plan?

6. Is the Company Ready in Terms of Data, Processes and People?

This is one of the factors frequently underestimated when planning an ERP project.

Many businesses expect ERP to solve problems that have existed for years.

However, if raw material data is inaccurate, processes between departments are inconsistent and responsibilities for updating information are unclear, ERP implementation may simply make these problems more visible.

Before implementation, businesses should assess three key areas:

Data

• Are raw material and finished goods master records consistent?
• Are BOMs and production standards regularly updated?
• Does inventory data accurately reflect actual stock levels?
• Are product costing rules clearly defined?

Processes

• Are procurement, warehouse, production and finance processes standardised?
• Do departments follow consistent transaction recording procedures?
• Are control and approval procedures clearly defined?

People

• Who will take primary responsibility for the project?
• Will department heads actively participate in implementation?
• Will employees receive sufficient training?
• Is management committed to supporting organisational change?

ERP cannot transform inconsistent processes into perfect ones simply by installing software.

Businesses must prepare all three elements: data, processes and people.

Question for CEOs and COOs:

If ERP implementation started next month, would the company already have the people, data and processes required to execute the project successfully?

7. Can the ERP System Integrate with Other Systems and Scale with the Business?

An ERP project should not simply address the factory’s current requirements.

Businesses must also consider their development plans over the next 3–5 years.

For example:

• Expanding into additional factories or warehouses.
• Introducing new product lines.
• Increasing order volumes and customer numbers.
• Expanding export operations.
• Connecting with MES to collect production data.
• Integrating with CRM, BI or e-commerce platforms.
• Applying AI and data analytics to business management.

An ERP system with a flexible architecture and suitable integration capabilities can help businesses avoid replacing their entire technology platform as their operational requirements evolve.

However, scalability is not just about technology.

Businesses must also evaluate user management, data security, access permissions, system performance and expansion costs.

Question for CEOs and IT Directors:

Can the ERP system selected today support the company’s growth plans over the next 3–5 years without creating the need for another major replacement investment?

8. Does the ERP Vendor and Implementation Partner Have the Right Capabilities?

Choosing the right software is important.

Choosing the right implementation partner is equally important.

A vendor may present an impressive list of features. But businesses need to know whether the implementation team genuinely understands manufacturing operations and can translate business requirements into effective system processes.

Some criteria to evaluate include:

• Experience implementing ERP for manufacturing businesses.
• Understanding of industry-specific plastics and packaging processes.
• Business consulting and process analysis capabilities.
• Ability to integrate ERP with MES and other systems.
• Project management methodology and scope control.
• Training programmes and post-implementation support.
• Ability to support the company as its systems expand.

In particular, ask implementation partners to explain how they would handle real-world factory scenarios rather than simply demonstrating standard software functions.

A good implementation partner is not someone who always says that every requirement can be delivered.

It is someone who can analyse which requirements are genuinely necessary, which should be adjusted and which solutions deliver the greatest business value.

Question for CEOs and COOs:

Does the ERP partner have sufficient experience to advise on manufacturing operations and support the business after the system goes live?

9. How Will the Company Measure the Success of the ERP Project?

This is the final question, but it needs to be addressed from the very beginning.

Many businesses consider an ERP project successful when the system goes live on schedule.

That is an implementation milestone, not a business outcome.

A genuinely successful ERP project must be evaluated against the objectives agreed upon before implementation.

For example:

Business Objective	Suggested KPI
Improve inventory control	Inventory accuracy
Reduce material waste	Scrap rate, material consumption variance
Improve production planning	Schedule adherence
Improve cost visibility	Standard vs. actual cost variance
Improve delivery performance	On-time delivery rate
Reduce administrative workload	Reporting and reconciliation time
Improve financial control	Month-end closing cycle

Businesses should record baseline performance indicators before implementation to establish a basis for comparison once the system is operational.

In addition, responsibility for KPI monitoring should be clearly assigned across departments.

The CEO can oversee overall business performance. The CFO can monitor financial performance and costs. The COO can evaluate productivity and operational efficiency.

Question for Business Leaders:

Six or twelve months after implementation, which numbers will prove that the ERP investment has actually delivered business value?

ERP Investment Does Not Start with Software. It Starts with Business Objectives.

For plastics and packaging manufacturers, ERP can play an important role in connecting data, controlling processes and improving visibility across manufacturing operations.

However, ERP value is not determined by the number of modules or features purchased.

Its value lies in the company’s ability to:

• Gain better control over raw material costs and production costs.
• Improve inventory data accuracy.
• Plan production based on actual resource availability.
• Connect information across production, warehousing, procurement and finance.
• Monitor business performance using reliable data.
• Build a foundation for data analytics and AI adoption.

Therefore, before selecting an ERP system, business leaders need to align investment objectives, assess current operations, define KPIs and choose a solution that supports the company’s long-term development strategy.

Data V Tech: Supporting Businesses Throughout Their ERP Investment Journey

At Data V Tech Solutions, we understand that every manufacturing business has its own processes, objectives and challenges.

We work with manufacturers and distributors to consult, implement and optimise enterprise management systems using Epicor solutions.

With Epicor Kinetic ERP, businesses can connect financial management, procurement, inventory, manufacturing, planning and order management operations on an integrated platform.

Combined with Epicor Advanced MES (Mattec), manufacturers can strengthen machine activity monitoring, track production performance and collect real-time data directly from the factory floor.

From initial requirements assessment to implementation and post-project support, Data V Tech focuses on helping businesses select solutions that fit their actual operations and business objectives.

Considering an ERP investment for your plastics or packaging manufacturing facility?

Do not start by comparing hundreds of software features.

Start by identifying what your business needs to improve, how the investment will generate value and how you will measure the results.

Contact Data V Tech to discuss your management requirements and explore an ERP implementation strategy that fits your business.