ERP Vendors

When You Need an ERP Vendor Comparison-Part 1

How does one compare different ERP software vendors? In this first of a three-part series, we look at some of the ways to compare different ERP systems vendors.

First, there are dozens from which to choose. Second, each has a different focus. Some are expert in customer relationship management, some in human resource management, and some in true enterprise resource planning with focus on integration of the different departments.

There are some basic considerations for comparing enterprise resource management applications. The best ERP software solution for your company will depend on your particular industry and business focus within it, but all companies, no matter what they offer, need to evaluate the following for ERP vendor comparisons.

Efficiency, resource, and monetary benefits

An enterprise software application vendor may claim they can save your company time and money (in fact, they will). But it is in the actual RFP where you should be able to assess if this claim is to be true. The best ERP application developers get to know your business to great depths, and can present a proposal that specifically focuses on your company's processes and how their ERP solution can address, and improve, operations within it. The proposal should have specific numbers: amount of time that may be saved, the particular reduction in materials waste, and the exact amount of efficiency gained in human resources or sales management or shipping and delivery, for example. Demand specifics from each vendor and you have your best chances of making a selection that best suits your business.

References

Getting references from other customers is important. But don't get just any references: the references must be from companies that are similar in size and mission. While they won't be in exactly the same business focus within the same industry (competitors aren't going to help you use their own ERP vendors), the ERP software vendor should be able to provide you with references similar enough. If your company manufactures toys sold in major retailers, then a company that manufactures bicycles or sports equipment may be appropriate as a reference. If your company provides computer memory to PC manufacturers, then a company that provides computer casings may be suitable for comparison, since both companies produce products that are shipped to computer manufacturers and are then assembled into a like end-product.

Once a company has narrowed down the selections to those ERP vendors that are most capable of providing relevant solutions, calling upon references is an excellent opportunity to gauge which ERP vendors should be invited to submit RFPs. Before contacting references, form a committee within the company to collaborate on a questionnaire that will take best advantage of this opportunity. Typically, you only want to impose on the references one time, so craft the questions to give you the most information in the least amount of time.

By Denise Harrison

Written by :

tracey boxer