Guide to Choosing Best ERP Software Partners

It is a big responsibility to select the correct ERP software solution. Without doing thorough reviews and proper planning, this expensive and sophisticated enterprise software can be a nightmare. All the aspects of operations will be affected by ERP functionality and performance that includes productivity, sales, customers and staff. Similarly, if you choose the right ERP system that is efficient, you can save a lot by streamlining logistics of supply chains, inventory, customer support, productivity and record keeping of everything. The main goal is synchronization of different functions like order management, accounting, HR, CRM and manufacturing from all places. The ability to control and monitor everything with a centralized software by implementation of ERP is worthy of the risk involved.

Choosing the Right ERP

There are various options to choose from for ERP providers and software. Determining the needs now and in the predicted future is the start of the selection process. There are ten steps that are important to take while selecting the best ERP solutions for the company.

1. Review present processes, problems and strengths

Note the company’s present processes, problems and weaknesses in different areas. Notice the limitations of the present systems and then see what process can be improved and how can you achieve them. A good analysis is able to shape future vision of the company and standard to measure the success of ERP solutions. After having a clear picture of what needs to be accomplished, you can involve vendors to match solutions to the goals that you have set. The vendors must show how the capabilities of their product will meet the business needs.

2. Short- and long-term Total Costs of Ownership (TCO)

Tallying the TCO over a three-year time period is an important step when evaluating the ERP solution. For a realistic cost, socialize the process with every stakeholder. The considerations include licensing, hardware, software, upgrade fees, support, annual maintenance fees, training, resource cost that is internal, implementation service and third party tools. If your company is on a stable growth curve, predict the expansion of system to other users, the cost in association with upgrading and new locations and processes. Also review your goals along with your ERP implementation partner. Their limitations and flexibility should be understood for avoiding excessive cost of upgrade or finding out very late that your needs have grown too big for the software.

3. Implementation Team, sponsorships and stakeholder

Sponsorships should come from highest level of management for driving between the initiatives as with company wide project. Leaders and sponsors are important for the success of the project by removal of barriers that hinder progress. It is important for top leaders to get in touch with management teams of every division that who will be impacted by change and to get them as members. This is done to involve everyone in the decision processes. When you include stakeholders in implementation team, it will increase the chances of success. They will be needed for providing support change during, before and after the ERP project is implemented. It is essential for the smooth running of the system in the first day because everything will go as you have planned.

4. Plan that goes above installation

As you are evaluating different solutions, implementation team develops an implementation plan simultaneously. The timeframe outlined by vendor is very optimistic. Time should be factor in for training, upgrading business process, data migration, multiple tests by end-users in every area, conference room pilot (CRP), managerial and organizational changes and workflow design. You should have an estimate of the resources and cost before making the final selection.

5. New ERP solution and its alignment with current infrastructures

ERP solution should align with the current technology else the cost and complexity can increase as you will have to replace the infrastructure. The options should be discussed with potential vendors and IT department to make sure that this new system works well with the current system.

6. Track of The ERP potential benefits

As you are exploring different vendor and options, make sure you have a system so that you can keep track of benefits that may be provided by every provider. Simple spreadsheet can be set up with all benefits and features that you need for the business. When every vendor will demonstrate the solutions, you can see who has best packages of software that decrease cost, revenue, scale for fast expansion and increase productivity.

7. Considering all Options that fit the requirements of your Business

Approximately there are 70 ERP software available. Do not be persuaded by a brand name. Just choose the option which offers functionality rather than extra features that are not needed by you. You can start with conference room pilot (CRP) in order test the end to end functionality. It shows how the solution will meet the requirements of the business. You can identify weak points and gaps in systems before purchase by making end users a part of testing group.

8. Independent recommendations

It is essential to look for unbiased input from stakeholders, end users, and managements before you decide a final choice. Check reviews to validate vendor claims and third-party reviews. To get a good recommendation, hire an ERP consultant so that you can make the right choice and your questions can be answered with their guidance.

9. Experienced vendor and implementation partner

Look for track record that is proven and longevity. Make sure to see the vendor and everyone anyone associated with implementation, in person. It is important to understand the responsibility for every part of the implementation process. Such as if the vendor is using third party for installation of everything and what is expected from the team. You should be able to check references as well as ask for support with any sale.

10. Final Decision

Short list vendors and compare the prices, functionality, and references. Support and functionality should be important for you while making a decision.