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Unsure how to evaluate ERP system vendors?
Year 2017
November 2017

Unsure how to evaluate ERP system vendors?

14 Nov 2017

Choosing an ERP system vendor can be a tedious process with some huge investment involved for a company. It is highly likely that you will face numerous checks, discussion, and negotiation before you agree to purchase the software system for your company. For companies looking for an ERP system, where do you start? Here we will share some tips that will help you start your search for an ERP system vendor.

Knowing the rough cost of an ERP system

  • The pricing of an ERP system can range up from a few hundred to a few hundred thousand. It is vital to know what you are paying for. Base on your size of the company, amount of users etc, it can serve as a guideline to determine if the overall pricing is justifiable for your current company size.
  • Common cost breakdown includes license fee, cost of implementation, training, consultation fee, maintenance and support fees. If the ERP platform is custom-built, it will require more work on the vendor’s end and they will charge you for it. With these breakdowns, it will be easier to understand what you are being charged for.

Ask for demo session or trial

  • It is a common practice for vendors to demonstrate how their ERP system work. Keep in mind that most of the time, they may display their bestselling features around to impress you instead of targeting to your actual business needs. You may need to drill in to determine if the system fits your company business processes.
  • Keep in mind some companies are ERP resellers and do not provide in-depth system customization capabilities. If you have a unique business flow it may be wise to consider vendors who develop their own system that allows software customization.
  • It will be beneficial to ask for a test/hands-on session for the ERP software. It will allow you to gauge the usability of the system. Feedbacks of end users from the different departments will also provide you with greater insight into possible critical features that may be overlooked otherwise.

Check for testimonies & online reviews

  • Testimonies and reviews are a good way to determine the usefulness of the product. It would be highly beneficial if the vendor has clients of the similar business process. This will allow you to know if the vendor has the resources to service your company.
  • Online platforms can be used to understand your vendor’s latest updates. It can be a gauge on how they respond to their customers, and it would be nice to know that the company is active if they have frequent updates and activities on their website and social From all these reviews online, you can also get a sense if the vendor is trustworthy or not.

Is the vendor local?

  • Local vendors can train your staff at your business premises. You can also visit their office or get hold of the vendor at any time if you have a technical issue with your software. These signals help determine if the vendor is a stable company that can provide you with the support and assistance you are looking for when you purchase the software from them.
  • It will be easier to set up face to face negotiation, rather than video calling and talking to your vendor through the computer screen. Being able to meet the vendor face to face can be a form of assurance in itself.
  • Establish a close business relationship and execute software implementation properly as opposed to a vendor that lives hundreds of miles away.