Reshoring Meets ERP: What J&J’s $55B Supply Chain Overhaul Tells Manufacturers About System Readiness

by Bill Baumann | Aug 4, 2026

Key Takeaways

  • Johnson & Johnson's commitment of more than $55 billion to U.S. production signals a broader reshoring wave that is testing whether existing manufacturing ERP software can support new domestic sites.
  • Reshoring introduces multi-site coordination and tighter compliance demands that homegrown and aging platforms were never designed to handle.
  • Real-time supply chain visibility software and modern MRP software have moved from competitive advantage to operational baseline for manufacturers expanding production.
  • A structured readiness assessment before scaling reduces the risk of ERP failure and protects the timeline of a major reshoring investment.

When a manufacturer commits to bringing production back to the United States, the announcement focuses on facilities, jobs, and capital. The harder question surfaces months later, when the manufacturing ERP software running the existing plants has to coordinate a new site, a new supply base, and a new set of compliance requirements at once. Reshoring exposes the difference between a system that records transactions and a system that can actually run an expanding operation.

Johnson & Johnson's decision to invest more than $55 billion in U.S. production over four years, including four new advanced manufacturing facilities, is the most visible example of a shift now reshaping how companies think about domestic capacity. That shift arrives alongside AI-driven control towers and real-time visibility tools that raise the bar for what a core system must deliver.

Today, we are examining whether your ERP can actually support reshoring and the multi-site complexity that comes with it.

2026 Clash of the Titans

We surveyed SAP, Oracle, Microsoft, and Infor customers to find out what their selection and implementation process was like. If you haven't begun researching ERP vendors, this report is a great place to start!

What Reshoring Demands From a Core System

Reshoring is the relocation of production from overseas back to a company's home country. For manufacturers it rarely means simply reopening a plant, because a reshored operation has to be planned, sourced, staffed, and integrated into an existing production network while the current business keeps running. The system of record has to absorb all of that without losing the accuracy that operations and finance depend on.

Two capabilities separate systems that can handle this from systems that cannot. The first is real-time visibility, which is the ability to see inventory and demand across every site as they change rather than in a report generated overnight. The second is coordination across locations, so that a decision made at a new domestic plant reflects immediately in planning at the plants that already exist. Modern manufacturing ERP software is built around both, while older platforms and homegrown tools often deliver neither.

Much of the recent conversation centers on the control tower, a centralized layer that aggregates data from across the supply chain into a single operational view. A control tower is only as useful as the data feeding it, and that data originates in the core system. When the underlying systems cannot produce clean, timely information, the visibility layer built on top of them inherits the same gaps. This is where the choice of ERP in manufacturing industries becomes a strategic decision rather than a back-office one.

Why Homegrown and Aging Systems Break Under Reshoring

Many manufacturers reach a reshoring decision while running platforms that have served them adequately for years. The difficulty is that a system judged adequate for a stable single-site operation is measured against a different standard once it has to support a rapidly expanding multi-site operation. When production scales, the weaknesses that were tolerable become operational risks that reach the plant floor.

Several patterns tend to surface once a new site comes online:

  • Fragmented planning: Each department or location maintains its own planning logic, so there is no single reliable view of demand or capacity across the network.
  • Manual reconciliation: Data moves between systems through spreadsheets and re-keying, which introduces delay and error precisely when speed and accuracy matter most.
  • Weak MRP capability: The existing MRP software cannot model the more complex bills of material and longer lead times that a new domestic supply base introduces.
  • No multi-site coordination: The platform was designed for one facility, so adding a second forces workarounds that erode data integrity over time.

These weaknesses are the same conditions that quietly undermine a new ERP implementation before it begins. A reshoring initiative does not create the underlying gap, because it removes the operational slack that was hiding it, and the cost of that exposure lands on the timeline and budget of a major capital investment.

Case Study

An Indiana-based manufacturer of industrial food-cutting machinery came to Panorama while still running a homegrown system that had reached its limit as the business grew. Each department had built its own planning process, which left the organization without a standardized view of how work moved across its domestic plants.

Panorama led a structured selection engagement that documented requirements and mapped the future-state processes before narrowing a broad field of vendors to four finalists through eight days of scripted demonstrations. That approach gave leadership a fact-based comparison and reflects the readiness question every reshoring manufacturer faces, because standardizing planning before selecting a platform is what allows a growing manufacturer to add capacity without carrying old inefficiencies into a new system.

Read the full industrial manufacturing ERP selection case study.

Closing the Visibility Gap

The visibility tools drawing attention right now, from AI-assisted control towers to real-time dashboards, address a problem manufacturers feel acutely during expansion. Leaders need to know what is happening across the network without waiting for a monthly close. Supply chain visibility software promises exactly that, and for a reshoring operation it can be the difference between catching a supply disruption early and discovering it after a line has already stopped.

That promise depends on a foundation. Visibility software consumes data, and it draws that data from the ERP and MRP layer beneath it. When the core system holds accurate, current information, a visibility layer turns it into insight. When the core system is fragmented, the same visibility layer produces confident-looking dashboards built on unreliable numbers. Selecting the best ERP for manufacturing is therefore a prerequisite for any visibility investment to pay off, because the quality of the platform sets the ceiling on everything layered above it.

Expert Insight

Our manufacturing ERP consulting team has found that organizations frequently invest in a visibility layer before confirming that the underlying data can support it, which yields dashboards that look precise while masking the same planning gaps that existed before. Reviewing the readiness of the core platform first protects that investment, and our ERP consulting services are built to surface those gaps before they reach go-live.

How to Assess ERP Readiness Before You Scale

A reshoring commitment creates a natural deadline for answering a question many manufacturers defer, which is whether the current platform can carry the expanded operation. Working through a short, structured assessment before the new site comes online gives leadership time to correct course while correction is still inexpensive.

1. Map Planning Across Every Location

Document how each site and department currently plans production and manages inventory, because reshoring fails fastest where planning logic is fragmented. A single map of current-state processes reveals where standardization has to happen before a new site inherits the same inconsistencies.

2. Test the System Against Multi-Site Scenarios

Run the existing platform through the specific scenarios reshoring will introduce, such as transferring demand between a new domestic plant and the facilities that already exist. If the system requires manual workarounds to model these situations today, it will require them at a far larger scale once production expands.

3. Evaluate MRP and Data Quality Together

Assess whether the current MRP software can handle the bills of material and lead times a domestic supply base introduces, then evaluate the accuracy of the master data it depends on. A capable engine running on poor data produces poor plans, so both have to be examined together.

4. Decide Between Remediation and Replacement

Use the findings to make an evidence-based decision about whether to strengthen the current manufacturing software systems or move to a new platform. Engaging ERP implementation services early in this decision helps quantify the cost and timeline of each path before the reshoring schedule forces a rushed choice. Panorama's guide to MRP software trends is a useful reference point for what a modern platform should deliver.

Learn More About ERP Readiness for Reshoring

Reshoring is a capital decision that ultimately runs on a software foundation. J&J's $55 billion commitment and the broader wave of domestic investment are raising expectations for how quickly and accurately manufacturers can coordinate production across sites. The organizations that treat system readiness as part of the reshoring plan, rather than a problem to solve after go-live, protect both the investment and the schedule.

Panorama's independent ERP consultants help manufacturers evaluate whether their current platform can support expansion and, where it cannot, select and implement one that can. Contact us below to learn more.

FAQs About ERP Readiness for Reshoring

How do I know if my manufacturing ERP software can support reshoring?

Test the platform against multi-site scenarios rather than its current single-site performance. If planning is fragmented across departments or coordinating a second location requires manual workarounds, the manufacturing ERP software will struggle under reshoring. A structured readiness assessment identifies these gaps while there is still time to remediate before the new site goes live.

What causes ERP failure during a manufacturing expansion?

Most failures during expansion trace back to conditions that existed before the project began, such as fragmented planning and poor master data. Reshoring does not create these gaps. It removes the operational slack that was hiding them, so problems that were tolerable at one site become costly once production scales across multiple locations.

Is MRP software enough, or do we need a full ERP for a new site?

MRP software manages material requirements and production scheduling, but a reshored site also introduces new financial and procurement demands that MRP alone does not cover. For most manufacturers adding domestic capacity, a full ERP platform with strong MRP capability provides the coordination a multi-site operation requires without the integration burden of separate systems.

How does supply chain visibility software relate to our ERP?

Supply chain visibility software sits on top of your ERP and draws its data from that layer, so it can only be as accurate as the information the core system provides. For reshoring operations, investing in visibility before confirming that the underlying manufacturing ERP software produces clean, current data tends to produce dashboards that look precise while masking real gaps.

When should we involve an ERP consultant in a reshoring project?

Involve an ERP consultant during the reshoring planning phase, before the design of the new site is locked. Early involvement allows an independent assessment of whether the current platform can scale and, if it cannot, enough runway to select and implement a replacement. Waiting until problems surface after go-live narrows the options and raises the cost of every correction.

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About the author

Bill Baumann is a senior executive with more than 30 years of experience leading growth, transformation, and market expansion across a broad range of industries, including energy, finance, manufacturing, medical devices, professional services, publishing, and nonprofits.

Over the past 10 years, Bill has managed a team of recognized Software Expert Witnesses, providing analysis and testimony in some of the largest ERP software implementation failures in the industry. His work in high-stakes litigation and arbitration is supported by a dedicated team of testifying experts, consulting specialists, and documentation administrators.

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