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How to Choose ERP System Vendors in Business

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How to Choose ERP System Vendors in Business

The ERP function will indeed make business processes more effective and efficient. But choosing an ERP application without identifying it first is a mistake. Because this system must also be adapted to the business you are running before choosing the right ERP vendor.

There are many vendors out there who offer ERP systems. So you should take the time to look for more details about the vendor you are going to choose. 

Here's How To Determine / Choose ERP Vendors For Business

If you target too many vendors, you will have difficulty comparing them. So it's best to narrow the choice down to just 2 or 3 vendors to conduct online investigations. After that, give them the opportunity to make a presentation directly to you regarding your problem or need.

1. ERP Solutions Offered

The first thing you should consider when looking for an ERP system is to focus on the solution you want. You should not immediately choose an ERP vendor even though you already have a lot of experience, a good reputation, and already have clients from well-known companies.

All that will be in vain if the vendor does not provide solutions for your company. So you must have your own ERP vendor criteria. For example, you want to know if the ERP module they offer is suitable for the business you are running.

There are many other things that you should ask each vendor such as an ERP system that can be integrated with an existing ERP system. 

2. Vendor Reputation

If you already have a vendor that is close to the desired criteria, the next step is to find out how their reputation is. You can look for it through their history online. For example, through search engines or social media or you can ask them directly to prospective vendors.

You find out what corporate clients they have served. Also get references that are similar to the business you are running. There's even nothing wrong with looking for references to your competitors.

From there you should get a list of clients from the vendors. Then reach out to these clients to learn more about their experience using the ERP vendor you are going to choose. From them you can know how the services provided by vendors to clients.

By asking directly to the vendor's client, you can also evaluate what ERP system you will use. Because you have to adapt it to your business. From here you can decide whether to continue or look for another vendor.

3. Vendor Services

Suppose you already have two ERP vendors who have met the desired criteria. The next stage is to compare the support provided by the two vendors. 

Because they must be able to help you fully if all of that is still related to the system they made. Therefore, you must also have a list of services provided by each ERP vendor. For example, the training time provided, the warranty provided, and so on.

4. Price Offered

Another factor that you should consider before choosing an ERP system is the price it offers. You have to make sure that the cost for using the ERP system offered by them is in accordance with the budget that has been determined by the company.

For example, you use a level one ERP system such as SAP and Oracle which are sold for billions of rupiah. The two of them also have had unquestionable experiences. But you will still lose if the solutions they offer do not suit your business needs.

Besides, you also don't want to use an ERP system that is sold at a low price. Because the cheap price does not necessarily match your expectations later. Therefore, you need to compare prices from each vendor as well as compare the benefits they offer and of course the quality of each vendor.

Tips for Choosing ERP Modules that Suitable for Your Company's Industry

How to Choose ERP System Vendors in Business

Do You know that each ERP system vendor will provide different modules? But most of them will provide basic modules for ERP applications. Therefore, you must know how to choose an ERP module that suits the company's industry.

To make it easier, you can determine what modules are needed for your company.

The following are some ERP modules that can be adapted to your current business or will be developed:

1. Retail and Wholesale

Industry Usually the retail and wholesale industry will often have direct contact with customers. If your retail business already has many customers, it means that your business is already trusted by many people. Because most of these customers are loyal customers or repeat customers.

Meanwhile, the wholesale business relies heavily on repeat customers. Even so, wholesale and retail businesses have the same work mechanism. So both of them also need similar ERP system modules.

The following are some modules that are perfect for retail and wholesale businesses:

  • Purchasing Management
  • Warehouse Management
  • Accounting Management
  • Inventory Management
  • Point of Sale
  • CRM
  • HRM

2. Manufacturing Industry 

The manufacturing industry needs a way or solution that can simplify a production process. Because this industry has the main job to process raw materials into finished materials. After that the product is sold to the customer.

The manufacturing industry will also make products according to customer demands. So they have to make a record in advance so that the products produced are in accordance with customer requests.

Following are some ERP system modules that you should consider:

  • Accounting Management
  • Membership Management
  • HRM
  • CRM
  • Booking Management

3. Educational Institutions 

Educational institutions really need an ERP module that is very specific for the teaching and learning process. The module must be able to simplify the learning process, manage school data, accept new students, and so on.

Educational institutions really need an ERP system for online learning processes. This also applies to those currently in the midst of the COVID-19 pandemic. The ERP system will make the online learning process more effective.

Some of the ERP system modules needed for educational institutions are as follows:

  • Inventory Management
  • Accounting Management
  • School Management
  • Learning Management

4. Property and Real Estate Business

If you are in this business, you need an ERP system that can make it easier for businesses to manage contracts with tenants. In fact, this business also requires an ERP module that is in charge of handling reservations, facility maintenance, to payment processing.

Some of the ERP system modules that you need for the property and real estate business are as follows:

  • Real Estate & Property Management
  • Rental Management
  • Contract Management
  • Accounting Management
  • Facility Management

5. Construction and Engineering Company 

This business engaged in construction and engineering needs a solution that can make it easier for them to plan projects, manage contracts with clients, monitor performance and work hours of employees , and budget allocation.

Some of the ERP modules needed by construction and engineering companies include the following:

  • Accounting Management
  • Inventory Management
  • HRM
  • CRM
  • Project & Contract Management

6. Food Business 

Food business players need an ERP module that can make it easier to order raw materials from suppliers. They also need a module that can speed up the payment process, handle orders from customers, monitor delivery of goods, and so on.

Some of the ERP system modules that are urgently needed by food business people are as follows:

  • Catering Management
  • Central Kitchen Management
  • Restaurant Management
  • POS
  • E-Menu

Benefits of Implementing ERP System in the Organization

Particularly, essential company benefits of ERP software application are:

a. Improved Company Coverage:

  • Much far better coverage devices with real-time info
  • A solitary resource of reality - one incorporated data source for all company procedures

b. Much far better customer support:

  • Much far better accessibility to client info
  • Much faster reaction times
  • Enhanced on-time shipment
  • Enhanced purchase precision

c. Enhanced Stock Expenses:

  • Just bring as a lot stock as required, prevent these typical problems
  • As well a lot stock, and greater above expenses
  • Insufficient stock, and much longer client satisfaction times

d. Increased Money Stream:

  • Much far better invoicing and much far better collections devices to bring money in much faster
  • Much faster money implies much a lot extra money on-hand for business

e. Set you back Cost financial savings:

  • Enhanced stock preparation
  • Much far better purchase administration
  • Much far better customer support
  • Enhanced supplier connection administration

f. Much far better Information & Shadow Safety and safety:

  • Devoted safety and safety sources
  • Prevent setting up harmful software application
  • Information dispersed throughout several web servers

g. Company Procedure Enhancements:

  • Automate hands-on or regular jobs
  • Execute smarter process
  • Acquire effectiveness

h. Provide Chain Administration:

  • Efficient need projecting and lean stock
  • Decrease manufacturing traffic jams
  • Openness with business

So when you are going to use an ERP system, make sure the modules are appropriate for your business or industry. Because it's useless if you use an ERP system that doesn't have a module that doesn't suit your business. So that your business work processes remain ineffective.

That's an ERP module that you can use as a reference before deciding to use an ERP system. The rest you must first consult with a professional ERP vendor so that you don't choose the wrong module.

In essence, the ERP system that will be used must be in accordance with the needs of your business. Even though they are expensive and experienced, it's useless if they don't offer a solution for your business.

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