Manufacturing companies know that choosing the wrong ERP system can cripple operations. After 20 years in the ERP world, John Lutz has seen both smooth, high-impact implementations and disastrous rollouts that cost companies millions. Now Vice President of Sales and Marketing at Open Source Integrators, Lutz helps manufacturers avoid the costly mistakes that turn ERP projects into painful, expensive lessons.
Understanding Manufacturing from the Ground Up
Lutz’s ERP journey began two decades ago when he joined a company to lead business development efforts. “I had some manufacturing background already, but then I got to understand how software impacts the manufacturing space and really learned the platform I worked for inside and out,” he recalls. That hands-on experience gave him a critical perspective: ERP must work for manufacturing processes, not against them.
Over the years, Lutz has worked across multiple ERP companies serving industries from plastics manufacturing to chemical manufacturing, distribution and automotive suppliers. His experience extends to companies with rigorous quality control demands—where a single defective part can shut down production lines. He has also spent significant time with manufacturing execution systems. “We sold process and machine monitoring to bring data directly from equipment and then populate information back to quality control systems, helping to see when we’re producing good parts versus bad parts,” Lutz explains.
Avoiding Common ERP Pitfalls
ERP implementations in manufacturing are rarely neutral. “ERP implementations in manufacturing go one of two ways. They either become the engine that powers growth inside an organization or they’re an anchor that drags down performance, depending on how they’re used,” Lutz says. A major reason for failure is the misconception that ERP is a plug-and-play solution. “Some companies think, ‘I’ll buy this software, flip a switch, and it will run my company,’” Lutz notes. This mindset leads businesses to skip the hard work of analyzing their existing processes and defining what they truly need from a system.
Focusing on What Truly Drives ERP Success
When manufacturing leaders ask Lutz what separates successful ERP projects from failures, he points to three key areas:
1. Think Business First, Software Second:
“The first mistake many manufacturers make is treating the ERP as a tech project instead of a business strategy project,” Lutz says. Companies need to define what problems they are solving—whether it’s improving delivery times, increasing visibility into operations, or protecting profit margins. Only after defining these goals should they evaluate how ERP fits into that vision.
2. Map and Simplify Current Processes:
This requires seeing the operation as it really is, not as people assume it is. “Before you can optimize anything, you need to be clear and honest about how operations function and how things get done today,” Lutz explains. “That means walking the floor, talking to planners, and shadowing the purchasing team.” Most companies discover they’re relying on far more workarounds and manual processes than they realized.
3. Build Trust Before Building Systems:
Even the best ERP system is useless if no one uses it. “ERP success is about adoption,” Lutz warns. “If your team doesn’t believe in the system, they won’t use it. If they don’t use it, you don’t get the data you need, and then you make even worse decisions.” Building buy-in means involving employees early and demonstrating how the system will make their jobs easier rather than harder.
The Next Frontier: AI and Integrated Systems
AI is already starting to reshape ERP. “Instead of relying on static reports built inside the system, you can now query data with AI prompts, pulling insights from different areas and pinpointing where you might have quality issues,” Lutz says. This shift means users no longer need to be data experts to extract meaningful information from their systems. However, many manufacturers still struggle with multiple disconnected systems—one for accounting, another for quality control, another for production planning. These data silos make decision-making slower and less accurate. Integrating everything under a unified ERP platform is key. “When you think about ERP, it’s not just about digitalizing what you do today. It’s about designing how you want to operate in the future,” Lutz explains. “When it’s done right, ERP doesn’t just make your business more efficient. It creates the foundation for growth.”
Connect with John Lutz on LinkedIn to learn how ERP can become your manufacturing growth engine—without the chaos.
