When investing in or upgrading your system, it can be difficult to find your way through the many different ERP applications available out there. Here’s our advice when starting out on your buying journey:
1) Choose a solution that can grow with you
Purchasing an ERP system for your company should be a long-term investment; it would be a mistake to choose a solution that suits you now, without considering your potential future business requirements.
You don’t want to end up replacing the system in two years’ time because you have reached a user limit or because you can’t add the functionality you require.
As your company grows, so will your number of employees, as well as the number of partners, vendors and suppliers you work with, so it’s vital that you choose a solution that’s scalable.
It’s also a good idea to choose a solution that can offer extended functionality if and when it is required, such as eCommerce capabilities, advanced financials or advanced inventory management.
And if you have plans to become an international company, we recommend making sure that you can add global capabilities such as multiple languages and currencies.
2) Pick a solution that can be tailored to your business
The right ERP should be customisable to your needs.
Many, or most, ERP implementations are out of the box and will not fit in 100% with your operations so it’s best to find one where you are able to pick and choose the functionality you need.
It’s worth finding out if the ERP vendors you’re talking to offer any industry-specific solutions that have already been optimised for your sector.
Finding more flexible ERP systems means you are only paying for what you actually need, and not for features that you will never use.
A good solution will also allow you to add more functionality over time if and when it is required.
3) Look for reporting and analytics tools
One of the key benefits of using ERP systems is that it gives you access to key information from across your entire organisation.
This means you should be able to locate and report on any type of data you need from any department quickly and easily.
You should be able to easily create accurate reports on key aspects of your business such as financial projections and customer satisfaction.
Also, you should have access to historical data and key trends over time that allows you to react quickly and remain competitive.
This information is only of true value when you’re able to view it clearly and easily, in the way that you need it. So the right ERP system should have easy-to-use dashboards, reporting and analytics tools.
4) Choose an ERP that integrates with your CRM
A good ERP solution will allow you to manage your entire business with a single solution, and this includes customer relationship management (CRM).
Good customer management has become much more complex. As well as new buying channels emerging and customer habits changing, people now expect a much higher level of service than they used to – and this goes for buyers in both the B2C and the B2B sectors.
Customers expect you to know who they are, what they’ve ordered in the past, how much they paid, their payment terms, what products they’re interested in, and more.
Fragmented systems mean a lack of visibility at the point of contact with the customer. You need a solution that can bring together data from your sales, marketing, customer service, order management, billing and finance departments.
This is why it’s important to choose an ERP that comes with CRM functionality included, or one that can integrate easily with your existing CRM.
5) Choose an ERP that is secure
When you are using a piece of software to store vital business information such as financial and customer data, you need to be confident that it’s safe.
When you choose an on-premise solution (more on this later), it’s up to you to look after data privacy, encryption, intrusion detection, password policies, etc. So make sure your IT department is up to the task.
When you choose cloud-based software, all of this is taken care of for you. You get to benefit from enterprise-grade security which includes all the latest protections, updates and patches. However, be sure to check the vendor has the appropriate security certifications and procedures in place.
The next step when choosing a new ERP for your business is to consider the type of partner you need to ensure your business operates more effectively than before.