ERP (enterprise resource planning) is a process used by companies to integrate and manage the essential portions of their business. The ERP software system can also assist in purchasing, planning, integrating, purchasing your inventory, sales, finance, human resources, and more. This consolidated process of organizing and gathering your business data through the ERP software automates your business functions, such as sales quoting, production, accounting, and more.
In truth, the ERP system makes it easier for your company’s operations across all departments. These solutions will improve how you handle your business resources whether it be raw materials in manufacturing or your staffing hours in your human resource department.
Selecting the right ERP system for your company does not have to be challenging. If you do the right research with the right tools and partner with the right professionals, such as CloudServices Solutions, you can make the right choice. These are some tips to use in identifying the right ERP system for your company.
Identify Your Company’s Software Needs
To begin your selection of the right ERP system, you should start by researching your alternatives, and what your needs are for the new software:
- Do you need an additional range in your software’s capabilities, such as billing of materials, advanced inventory needs, or supply chain management?
- Do you need to integrate your systems to achieve more efficiency?
- Do you need a more comprehensive solution for your business to fill your growth requirements?
- Has your data become corrupted, or is your system lacking speed?
Once you’ve discovered what your business needs are, you are ready to implement these steps:
- Get a project team together that has the knowledge to represent all significant departments within your business
- Decide what your project objectives are and how changing the goals of your business’s software amid the process will impact your results
- Determine a budget that will financially work for your business to change the ERP system software. Look at all expenses related to the project, such as updating hardware and other outdated systems which will not work with the new system
Determine Your Options
When identifying which software solution you should consider, you need to know what your business needs are as looked at by your business management program. You will want to complete a formal needs assessment review. The software assessment process will determine your objectives, such as:
- The problems you are having with your accounting software
- What functions will you need in your new system
- Who will be using the new accounting/CRM/ERP system
- What other systems will need to be integrated
- What information will have to be derived from your new system
It may take some time to complete this assessment, but it will help you identify the right ERP system with the insight you gather.
Evaluate Your Business Management Solutions
With the assessment process behind you, it is time to request a detailed business management software demonstration. This demonstration will show you if the solution will meet your critical requirements and whether this is the best solution for your business.
Hidden Costs of an ERP System
Once your ERP selection team has connected with the different vendors, analyzed everything you know to be necessary, and made a selection, it’s time to start using your new powerful ERP system. Even though you were given an estimate for your total costs to implement this system, you could still be surprised at the amount of ‘hidden costs’ that are involved. This costs can add to up to significant amounts and can include:
- Training costs
- Re-engineered process
- Integration and customization
- Labor costs
- Testing, retesting, and more testing
- Bolt-On Applications
Bolt-on applications are not part of the ERP system package. These are often benefits a company was hoping to receive with the system, but they end up being ‘bolt-on’ applications you have to purchase through a third-party vendor. Some of the more common bolt-on applications include:
- Advanced supply chain management
- HR management
- Vendor relationship management
These ‘hidden cost’ applications are as difficult as the core implementation. Consultants are reluctant to embrace the bolt-on with your core implementation as they contain very specialized knowledge areas. These bolt-on applications are not widely understood with consultants, and they remain as a bolt-on because they do not integrate well with the ERP system package you’ve purchased.
Additional bolt-ons are going to increase the total cost of your ERP system solution. Purchasing these additions does not guarantee they will work as you expect them to once ‘bolted-on’ to your core ERP system. If you embrace a fully integrated ERP software solution, you can cut out this middle piece, eliminate connectivity complications, and data redundancy. A fully integrated ERP system will also eliminate unfriendly user interfaces and interface risks.
Talk with the experts at CloudServices Solutions to ensure you are receiving a fully integrated ERP system to meet all your needs. When you have a full-suite solution, you have only one integrated solution to maintain, and one vendor delivering you end-to-end support.
Choose the Best Business Management Partner and Software
A few tips for you to follow when identifying which ERP system is a solution for your business needs include:
- The ERP system you identify should be right for your business needs. This system should not contain more features then you need. Additional, unnecessary features will make the system more difficult to use
- The ERP system you identify should have the features that will streamline your business operations and help you achieve efficiencies
- The ERP system you identify needs to be flexible enough to fit your business needs and don’t allow limitations that would require you use manual accounting operations
CloudServices Solutions is your trusted ERP expert. We have more than twenty years of working and consulting with companies and are ready to help you through the ten steps necessary for your successful ERP rollout. Our systems are proven successful for integrating ERP cloud solutions and are prepared to help your business save money and time.