Manufacturing ERP system can either make or break your business if you choose the wrong ERP vendor for your business. A planned ERP selection process can support your overall business goals. A strong and robust foundation of planning and strategy, and preferably experience, is required when taking on this task. So, you should not take this process lightly.
In this article, we’ll cover all the steps which are essential to implement a powerful manufacturing ERP system. Manufacturing ERP solutions can transform your entire business operations from production to supply chain. By following our tips, you will find that choosing an enterprise resource planning system goes much smoother.
Table of Content-
Prepare a list of ERP Systems
Shortlist the suitable ERP vendors
Schedule ERP vendor's demos
Negotiate with ERP vendors
ERP implementation process
1. Prepare a list of ERP Systems-
Before making a long list of manufacturing ERP systems, you need to discuss with your core team where you need to improve in business. You can prepare a list of customizations and where you need exactly this customized software.
While building a long list of ERP Software, you’ll need selection criteria. It might include price, corporate values, industry focus and anything else that is most relevant. Most importantly, your criteria should include your priority business needs and requirements. You can include a few points such as industry experience, vendor reputation, cost, scalability, vendor viability, etc.
2. Shortlist the suitable ERP vendors
It’s time to shortlist those vendors who are top on your list. You’ll need to schedule phone calls and send emails along with your business requirements, and connect with vendors with your experts. You should also issue requests for information that outlines your company’s requirements as well as your short- and long-term goals.
It is possible for all capable vendors to address all your industry challenges and requirements. Have a transparent conversation with your vendor so that they can address each requirement, with standard functionality, configuration, customization or a third-party bolt-on.
3. Schedule ERP vendor demos
Once the phone call conversation is done, you still need the demo from vendors, so that it will be clear from your end, how their manufacturing ERP software works and what are the main features or benefits. ERP demos are useful before the implementation that can help to clear your doubts and confusion.
Vendor demos are designed in such a way as to provide your team with an in-depth look at functionality, also your team can ask related questions. After each demo, your selection team can evaluate the software’s ability to address each business’s needs and requirements. After the demo, you can check their capability and whether will they deliver on time or not. Software implementation delivered on time is important. Everything will be in writing, do not take their word, if in case they are not able to prove their capability.
4. Negotiate with ERP vendor
Once you’ve shortlisted the ERP vendor after the demo, you can set realistic goals and negotiate before implementation. The best ERP consultant for ERP negotiations can be difficult sometimes. The consultant will also conduct a long-term total cost of ownership analysis, including factors such as resource rates, and licensing structures.
Vendor negotiations can last several months. In this process you will see that you’ve achieved 30-60% cost savings, however, it totally depends on the ERP vendor’s flexibility and the size of your business.
5. ERP implementation process
Before the implementation process, you can pause everything and breathe, review then move forward for the final implementation process. During the implementation, your selection team may have been enthusiastic about requirements collecting and process improvement. Now it’s the time to ensure they support the implementation plan by allowing them to provide input results.
Wrap Up-
Selecting the perfect and suitable ERP vendor partner for your business can be difficult and time-consuming initially because it’s a big investment for the entire organization. Before implementation of ERP software, you need to sit with your core team members in your organization, discuss the lack of areas of business, where you need the customization, set the budget goals, etc.
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