This article is relevant for businesses that are facing issues with productivity, high operation costs, poor scheduling and planning, and lack of growth. It provides information on how to select the right ERP system for their organization, including types of ERP systems, an ERP requirement list, and selection criteria for the right ERP system. The article also outlines the steps to follow for a successful ERP system selection and implementation and answers frequently asked questions about ERP selection.
Business issues such as low productivity, high operation costs, and poor scheduling and planning can stunt its growth and expansion. Lack of growth limits the company’s ability to grab new opportunities, cope with competition, and unlock its full potential. SMEs that have been facing these problems are now choosing ERP. Large companies that could afford legacy ERP systems are now transitioning to cloud computing. No business wants to miss an all-encompassing business software solution like ERP. We will tell you how to select the right ERP system for your organization.
Enterprise Resource Planning (ERP) is a business management software solution. It connects the main business functions such as accounting and finance, marketing, inventory management, warehouse management, human capital management, manufacturing resource planning, and customer relationship management.
Installing a new ERP system is to centralize all business departments and automate their activities and processes. ERP systems improve not only automation and real-time visibility. They also facilitate the collection and storage of different pieces of data in a central database.
Ximple ERP automation improves workflows & processes across the distribution departments which help to reduce operational cost and productivity.
If you want our wholsale distribution business experts at Ximple Solution to help you digitalize your distribution business or upgrade your legacy ERP, just book a call
By consulting this data, managers can diagnose issues in each department and solve them before they worsen. Implementing ERP can help prevent legal compliance issues, automate financial reporting, and establish flawless workflow planning.
Different types of ERP systems exist now. Nevertheless, we have 3 ERP systems from which all kinds stem. These include:
Here is a software selection template that any company can use. Since companies operate in different industries, some organizations might not use all the requirements on this list:
When we are going to select the right ERP System, selection can be tricky. So, follow these steps to make it easier.
How can you select the best ERP tool in this digital era? Technological changes are happening daily. What was trendy yesterday might be outdated tomorrow. Hence, this is your only chance to make your e-selection criteria for ERP work.
So what ERP vendor selection criteria should you use? No selection template suits every company. So, make yours based on these parameters:
In your thorough ERP evaluation process, come up with a logical checklist. A good ERP selection checklist consists of the features you want your ERP to automate:
Companies need to know how to choose the right ERP for their needs. That calls for caution when determining their ERP requirements. The first step is to assess the necessary features and tools based on your business needs. Next, focus on the vendor’s ability to deliver ERP based on your needs and goals. To assess your ERP requirements and do a successful implementation task, answer these questions.
As ERP represents a massive investment, it must support your future goals. A scalable solution should efficiently address your future growth and expansion plans.
As an ERP software provider has business plans, you may not know their future objectives. Even so, understand that your business’s success depends on its ability to sustain its operations.
Studying past business strategies and practices is easy to gauge where a vendor might be a few years from now. If they are a well-established company, it is unlikely that it could run out of capital in the future.
Employees will use the new software daily to increase their productivity and save time. It is vital to conduct a survey involving them to gather their thoughts. Additionally, you can assess their workflows and see how the new software solution can boost or hinder them.
Identifying the most vital business requirements before purchasing an ERP product is a must. If your company falls under SMEs, it might have some capital limitations. Thus, it may only afford essential ERP software with a few modules. If that is the case, you would rather spend on a solution that can address your most crucial business problems.
Your business is a unique entity even within its industry. Thus, it would help if you had a well-versed ERP vendor who could evaluate and meet your needs. If you are in a wholesale and distribution business, you can find an industry-specific ERP like Ximple. After that, you will have a scalable cloud-based solution requiring no customizations.
As you are new to the enterprise resource planning tool, you require a vendor who can follow up with you after implementing your software. They should train your in-house team to ensure it understands how the system works. Additionally, the vendor should be patient enough to teach people based on their ability to adapt to change.
We have discussed three types of ERPs. As you compile your ERP requirements, remember to select the best option. Since cloud computing is the future of businesses, choosing a cloud-based ERP tool would be safe. Besides the ease of remote access, a cloud-based solution offers multi-factor authentication and sophisticated data encryption. Above all, you will never have to worry about server issues or upgrading costs.
Setting up your budget is very necessary. If you know that you can spend up to $100,000, it will be easier to choose a suitable vendor based on that budget. Be aware of hidden costs that you might get to know about later on.
ERP is an integrated software suite offering different business management modules. ERP must conform to your organization’s standards and structure by providing reliable data. Thus, ERP selection entails choosing the most appropriate software option for your organization.
The comprehensive selection process must align with your organizational goals and values. The professionals responsible for the ERP selection process must be good strategists with prior experience. The ERP selection process is comprehensive; it can end in around fourteen to twenty-four weeks.
ERP selection has many steps. Here are the five main steps:
It is essential to do the ERP selection process to avoid buying a system that does not align with your business goals. The entire process of selecting, buying, and implementing ERP is expensive and time-consuming. Choosing the wrong ERP software can lead to a waste of time and money.
Implementing an ERP system can help businesses overcome various challenges and drive growth. To select the right ERP system, businesses must understand their current needs and create a requirement checklist that addresses their specific goals. The selection process can be tricky, but following a structured approach and evaluating potential vendors based on specific selection criteria can help. Choosing the right ERP system is critical for a successful implementation, and businesses must also consider factors such as future scalability, industry-specific requirements, expected ROI, and ease and cost of implementation. With a comprehensive understanding of the ERP selection process and careful consideration of all relevant factors, businesses can choose the ideal ERP system that can effectively address their current and future need.
Hitesh Barot is a Technologist and blogger passionate about solving business and technological challenges in Wholesale Distribution, Retail, and Manufacturing Industries. He has more than 20 years of experience leading the IT department for the Distribution, Retail, and Manufacturing business. Learn more about him here and connect with him on LinkedIn.