Finding an ERP partner who understands the unique business needs and offers compatible solutions to address them is necessary. This is sure to make the implementation stress-free and helps you use the ERP system to its full capacity.
Ending up with the wrong ERP vendor and product will not only cause delays in production, supply and increase expenses beyond budget, it may affect your reputation in the market. To ensure quick decision-making and efficient operations handling, here are seven questions you should ask an ERP vendor when selecting a suitable ERP solution.
1. What Experience Do You Have in Our Industry?
When selecting an ERP partner, research their services and reputation in the market. Do not hesitate to ask about their experience in providing services in the industry your business belongs to. Every industry has unique requirements, making it essential for the ERP partner to know about these demands. For instance, a firm dealing in manufacturing needs an ERP system that can manage inventory, plan and schedule production, and maintain compliance with regulatory requirements which is very different from food processing industry where stock in-out dates are critical
ERP vendors with prior experience in catering to similar industries will assure a smooth implementation. They are already familiar with the challenges and have expertise to deal with them.
2. How Will You Support Us During the ERP Implementation Process?
The implementation process may take weeks, months, or even years. It is gradual, time-consuming and does not just end with the software installation. It is an ongoing process in which ERP vendors must extend continuous support. To ensure you do not face any setbacks, ask the ERP vendor about their team size, strength and type of support they provide. Ask whether they operate on-site or remotely.
Understanding your ERP partner’s support plan during the initial phase can ensure success. ERP vendors who provide post-implementation support help to optimize the system to its full potential so that users can use it effectively.
3. How Customizable is Your ERP Solution?
Ask whether the ERP vendor provides customizations and know if any limitations exist. Some ERP providers offer extensive customization to help you benefit from the ERP implementation, while in some cases, integrations may be needed
While having a flexible customization has its own set of advantages like mapping the existing processes and easy adaptability, on the other hand too much customization may hamper process change adaptation in future. It is also crucial to weigh the cost and time for the customization efforts with the expected RoI for the system.
4. What is the Total Cost of Ownership?
While several costs are involved in the ERP implementation process, it is important to estimate the total cost of ownership. This includes the license purchase price, customization fees, annual maintenance costs, upgrades, training expenses, and ongoing support. All these expenses can significantly impact your budget. Enquiring about these associated costs will aid with the investment forecast and prepare for recurring costs if any.
Ask your vendor to provide a breakdown of the costs, ensuring they remain transparent. Understanding the total cost will help you make an informed decision and assess whether the ERP solution will provide a return on investment (ROI) and prove worthwhile.
5. How Scalable is Your ERP System?
Businesses in their growing stage must seek a scalable ERP solution. The system must be capable of evolving with the industry’s increasing complexity and demands. Ask your ERP provider about the scalability of their ERP system. Learn whether the ERP solution can handle additional requirements that may arise with the business growth.
Implementing a scalable ERP solution will enable adding new users, integrating the latest functions, and managing additional data load without stopping existing operations. This level of flexibility ensures business owners benefit from the investment in the long run.
6. What Training and Documentation Will You Provide?
For a successful ERP implementation, your organization’s employees must be capable of adopting and handling the new system. The need for training and proper documentation is essential when using the ERP system. The system users must be confident and comfortable to use it in their everyday routine. Ask your ERP partner whether they provide user training, learn about the mode – remote or on-site, and whether the training is available for specific departments or the entire team.
Enquire if the ERP partner follows a thorough documentation process. This will help your team become independent and find solutions to daily issues independently. An ERP vendor providing a training plan and an implementation timeline is ideal for any business owner.
7. What is Your Approach to Data Migration and System Integration?
The most complex task during the ERP implementation process is migrating existing data from old systems to a new one. Ask your ERP partner about their approach to a successful migration, whether they assist with migration and the necessary precautions to avoid corrupting or losing data. The ERP system must seamlessly integrate data from the old system, ensuring no record duplication exists, and no information is lost during the shift.
Without efficient support from the ERP vendor during the data migration process, your business may suffer inaccuracies and operational disruptions. An ERP vendor with prior experience and a positive track record will have a tried-and-tested methodology, ensuring a smooth shift to the new system.
Conclusion
While in-depth research about ERP systems and vendors is needed, starting your implementation journey with these seven questions will help you ensure success. A transparent relationship between the business owner and the ERP vendor is necessary. Businesses must not shy away from asking essential questions to learn about the system and the services offered by the vendor. The partner, too, must understand their client’s requirements to offer an effective solution.
This blog has listed seven essential questions that you, as a business owner, should ask an ERP vendor. You may find this guide by SourcePro Infotech Pvt. Ltd. helpful in understanding the ERP selection process.
For business owners looking for an ERP partner who provides flexible, scalable, and customizable ERP solutions, SourcePro can be an excellent choice. We offer different modules catering to specific organizational functions. Learn more about our services by consulting with an expert.