Choosing the correct ERP (Enterprise Resource Planning) vendor is a make-or-break decision that can establish or destroy your company’s productivity, growth, and long-term success. With so many vendors providing different choices, pricing models, and support approaches, you can easily lose your way. To make an educated choice, you must move past demos and catalogs.
Here are 7 definite questions to ask before deciding on an ERP vendor:
1. Is the ERP solution appropriate for my industry?
Each industry has specific processes and regulations. Ask whether the ERP vendor supports your industry and if their solution includes industry-specific features. A manufacturing company may, for instance, need full-blown production planning, while a retail enterprise might demand inventory and POS integration.
2. How scalable is the solution?
Your business will grow, and your ERP needs to grow with it. Determine if the ERP can be scaled to accommodate more users, new locations, or additional operations without a significant amount of redevelopment or expense. Scalability isn’t just a matter of supporting more users and locations, but also performance. can the system keep up with more data and transactions as you expand?
Ask: “What do we do when we double our users or move into a new geography?”
3. What is the total cost of ownership (TCO)?
ERP pricing can be deceptive. The initial price quote may not include implementation, customization, training, updates, support, and future upgrades. Be sure to ask for a full breakdown of all costs involved, not just licensing.
Don’t forget to consider: Cloud vs. on-premises pricing, integration costs, and maintenance costs.
4. How flexible and customizable is the system?
No two companies are the same. A good ERP should enable you to customize workflows, reports, user permissions, and integrations. Observe how easy (or hard) it is to make changes, and whether vendor support needs to be called in to make them or can be done in-house.
Make Transparent: “How do customizations affect system upgrades?”
5. What is the implementation timeline and methodology?
A realistic timeline estimation for completion is very important.
6. How do they implement?
It is necessary to know the vendor’s implementation process. Request an honest schedule from your requirements. Is the vendor using a well-tested implementation methodology? Will they have a project manager, or an implementation team dedicated?
Red flag: Vendors that are offering rapid go-lives without fully evaluating your business processes.
6. What training and support options are available?
Post-implementation support can either make or break your ERP experience. Ask about the support channels (phone, email, portal), response times, and service level agreements (SLAs). And ask about user training options online, on-site, or self-paced.
Bonus: Ask if the vendor has a knowledge base or user community forum.
7. How does the ERP integrate with existing systems?
ERP stands alone. See how it will work with your current tools like CRM, eCommerce, accounting packages, or third-party logistics providers. In case you are using Microsoft software, for instance, integration with Office 365 or Power BI may be top priority.
Final Thoughts
Selecting an ERP vendor isn’t software procurement; it’s a multiple-year relationship. Asking these seven questions will make you better prepared to comprehend the capabilities, style, and fitness of the vendor to your firm. Be slow to rush in, engage your stakeholders, and compare at least a couple of vendors before settling.
Your ERP system must allow growth, not suffocate it. Get the correct answers today so you will not be shocked tomorrow.
