Understanding The ERP Selection Process

Selecting an ERP system is a complex task, and in order to do it properly each system needs to be analyzed using certain set criteria to ensure the system fits the needs of the organization and will do the job it is intended to do. Hours will be spent upon the selection process plan. In the main there are three main parts to the selection process, which are choosing a system for your industry, choosing a system within your budget, and choosing an ERP system that handles the functions you want it to. This article will deal with these points and discuss some considerations that need to be taken into account when dealing with the ERP selection process.

The first point in finding an ERP system is to look at the systems that handle the functions that are important to your organization. Most ERP systems can handle a full range of functions such as warehousing management, inventory control, and raw material procurement among others. This means there is almost certainly an ERP system which can handle all the functions you require of it. What needs to be considered is whether your organization needs all the functions, and if not, can some of the ERP software modules be purchased separately so as to avoid the cost of purchasing a system with many redundant modules.

It is also extremely important to choose an ERP system which provides all the functions needed for your particular industry. It may even be a wise choice to choose a system which specializes in your particular industry. Some ERP software packages specialize in manufacturing process, while others are more geared toward the retail industry or service industries in general. Specialized construction or engineering ERP packages are also available. Choosing an ERP packages that is geared toward a particular industry makes it more likely that a workable ERP solution will be achieved.

Choosing an ERP system according to your budget is also one of the crucial parts of selecting an ERP package. What needs to be considered is the possibility of buying a system which is cheaper than the competition but which later fails to live up to expectations. When the budget for the ERP system is being discussed, it is better to concentrate on what you are getting for the money rather than how much money is being spent. An ERP system is a complex piece of software and so the budget approval request should also be extremely detailed and be a major part of the selection plan

Once these three basic requirements have been discussed, there will probably then be a request for proposal (RFP) document produced containing all the system requirements which will be sent out to various ERP vendors. Following this there will be a sales demo by the ERP suppliers short listed, from which a final choice can be made. Another point to bear in mind is to make sure that the supplier chosen can also supply training on how to use the system.

Overall, it is better to try to evaluate as many systems as possible, and take time to find the best one since an investment in an ERP system is made only once every decade or so, if that. Take time to research the offers from the best suppliers that can provide an ERP package that gives you the functionality you need and has a track record of providing systems for your industry.

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