Helping you select the best ERP system for your business

Usually people start detailed comparison of ERP systems too soon. What they need to do first is decide which key areas or processes in their business are most in need of improvement, and set themselves some improvement objectives that they can measure. No system is going to deliver those benefits on its own - the benefit will come from how the system is applied.

The next step is to share the current limitations and visionary goals of your business with a small number of potential suppliers. You should let them tell you how their system could be applied to improve your business. They probably should visit your factory to see for themselves how you work now.

If you use an external consultant, they should be presenting vendors with their view of your business requirements, not translating that into a 200 page ITT ticklist.

From the vendor's subsequent presentations you should see differences in the level of understanding they demonstrate about your business. You will also get a view of the focus of their operation and the fit of their product to your company's size and ambitions.

You can then shortlist 2 or 3 suppliers who understand your business, have a related customer base for reference, are likely to support you into the future, and have sufficient resource for ongoing product development. Only then does the features and functions checklist come into play - and your objective is not to get a full set of ticks, but to ensure there are no surprises later.

Don't forget that you are buying a long-term relationship with the vendor who can best help you move your business forward.

Keep the selection process and the price negotiation separate. Ask for a budgetary indication up front before adding suppliers to your shortlist. Choose your preferred supplier for the right business reasons, and then negotiate. If they can't match your budget, make a decision to either reduce the scope of the system for now, or move down to your number two.

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