When doing an ERP (enterprise resource planning) vendor comparison, consider not only the front line vendor but the relationship that exists between the software manufacturer and its distributor.  Often, when exploration of various ERP options begins, the development company will be accompanied by a preferred vendor.  The relationship and support of the vendor can often be just as, if not more important than that of the software company itself.  In some cases, the developer and distributor are one and the same but more often than not a middle man manages day to day activities. Buyers work closely with the vendor and when it comes to support, the lines between sales and technical support are often blurred.

ERP Vendor

A Comprehensive Approach to ERP Vendor Comparison

Most commonly, enterprise level software is distributed through a VAR (value added reseller) or a large account reseller aka LAR. Equally important with choosing the ERP software is choosing the vendor for that software.  Early in that leads to the eventual purchase of an ERP system, the raw material is gathered for the ERP vendor comparison.

Researching the competing vendors’ company history and reputation and getting feedback from present and former customers. Look for a stable vendor.  How long have they been around?  Are they growing? What is the turnover like among account reps? Are dedicated account reps offered? How deep does the support bench go? Check the track record. What does the media say about them?  Do they fly under the radar?  Look at their financials, white papers and so on.  In short, trust but verify.  All vendors should be capable of presenting themselves well.  It is up to the buyer to investigate beyond the presentation.

Shoppers should enter this process prepared to do a little work in order to get the best value. Ask current and past customers about how the vendor is to work with.  How closely does the rep work with them? Are they supporting the customer in the manner that best serves their needs?  Is the vendor responsive to any specialized needs?  Billing and accounting – is it accurate and efficient?  When there is a billing question, how well does the vendor’s resolution process work?  How well does a vendor do their job in general?  Is the vendor considered a valued partner?  If it is possible to contact former customers of any of the vendors, do so. Getting on feedback on changing vendors can be very useful.

Face to face meetings with potential vendors is essential and should be welcomed.  Do they work well with the client?  Do they know their stuff?  What are their processes?  How rigid are their policies and why? Often, multiple vendors offer the same product and if the product has been chosen the decision to be made lies in choosing the vendor.  Service and support is what the buyer is looking for as well as price.  Getting the most value for each dollar spent is the goal.  

An ERP system is a major capital investment for any company and has ramifications that reach far beyond the dollar impact of purchase price.  The value of support and service cannot be underestimated and should be a major component of ERP vendor comparison.

Written by :

warren