Four Useful Tips When Selecting an ERP Vendor

Are you a large business, looking to manage your various functions in a smooth and organised way? Do you want your business activities to be carried out smoothly with minimal hassles? Running a business efficiently and productively needs a lot of help from the information technology sector. Getting Enterprise Resource Planning (ERP) software may be the perfect solution.

ERP software is a kind of business software which integrates the different functions involved in running a business, such as human resource, project management, payroll management, leave, product planning, design, marketing and other technological aspects in such a way that everything goes on seamlessly. Many back office functions are automated, and it considerably improves the efficiency of business.

ERP packages can be obtained on different scales for different sizes of companies. And there are many different modules which are tailored for different objectives, such as product planning, material purchasing, inventory control, distribution, etc. Since there are many ERP vendors, it may be confusing to decide which vendor to opt for. Companies need to think through before they decide on a vendor because ERP systems are very expensive and require extensive maintenance and hence, the investment is huge. Here are some strategies to help you decide on how to pick the right vendor who would fulfil your business needs. The strategies are outlined in order of how a typical ERP selection system should proceed.

Generate Consensus

As ERP requires investment, it is important to get a consensus on the need of ERP for your office. The plans should be shared and discussed with co-workers; their feedback is important since they are the people who would be using the system for their different roles and projects. You need to convince your organisation as to why choosing an ERP system is needed, and the cooperation of senior management is a must.

Lay Down Groundwork

Do the groundwork; check whether your organisation is ready for the implementation of this system, monetarily and from the point of view of employees. Creating a survey for the company could provide a platform where potential issues may show up and could be resolved pre-purchase. See which system is better for the bottom line of your company and which provides greater advantage at lesser costs. Lower upfront costs may often have hidden charges.

Define Requirements

You have to define in detail the requirements for which you would need to use the ERP. Once you have defined those priorities or “must haves,” the ERP searches and implementation would be focused on your specific needs. You may be confused between whether to focus on operations or technology. The emphasis when planning to use ERP for your business is to remember that it should be compatible with your business operations. Hence you may need to check out both traditional vendors and cloud-based ERP vendors and see which fits the best with your business.

Demonstrate the System

This is a vital part of a focused ERP system selection process. The three main questions to be asked at the time of system demonstration are:

1) Is the system is easy to operate and maintain?

2) Does the system fulfill all the requirements needed by my company?

3) Will this software easily allow collaboration and communication between staff?

During the demo, the vendor will showcase a test script that should include all the possible scenarios you want to see happening. Identify any gaps between what is required by you and provided by the vendor; evaluate any special features provided by the system, which differentiates them from other vendors. The demo should have enough time to showcase the ease of use of the system. The system should be able to competently cope with daily tasks and ensure that they are carried out efficiently in the minimal amount of time. Check out whether the system offers time saving and productivity features. This would definitely be a plus point to watch out for.

The ERP vendor staff should have had reasonable amount of experience in handling projects from your industry. They should demonstrate the knowledge of handling similar clients such as you, be thoroughly knowledgeable and demonstrate expertise.

Madelyn Jade is a branding and marketing consultant and has published several papers on these subjects. She assists essay writing service company, Life Saver Essays, and is also a part-time blogger for Fit Biz Loans. With more than 10 years of digital marketing experience, she loves supporting entrepreneurs in achieving online success.

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One Response to “ Four Useful Tips When Selecting an ERP Vendor ”

  1. INOC | noc support for microwave networks on

    Back office jobs like any other jobs can get intense especially when deadlines are being pressed on you. ERP software is a savior as it lessens the load of work for business functions such as payroll, organizational tasks etc. Of course that still depends on your provider. I agree to this list but I think the most important in choosing the right ERP will be the functions of the program that suits the company. ERP may appear to some as the same but actually it differs depending on what type of company will the ERP be put in. This is I think the most important. Great post and thanks for sharing.


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