Enterprise Resource Planning (ERP) systems, like with larger organizations, are becoming increasingly popular with Canadian small and medium-sized businesses. It’s basically a software package that manages key functions in your business with a shared information database.
ERP Systems save time and money
With an ERP system, you can integrate various tools in different departments of the business. From the customer facing front end, through scheduling and planning, to the production and distribution of the products you make, the system does it all. Thus, it will save you time and money.
By automating certain aspects of your business processes, you are more efficient, less prone to error, and faster. It also ensures you of coherence, avoiding duplication and people working at cross purposes in different parts of the organization.
Moreover, you can have financial and boardroom quality reports or you might conduct an analysis on the performance of your organization.
Failures due to poor system selection
Meanwhile, there are also a lot of ERP systems that fail to deliver the benefits that the companies expect. Most of these ERP failures can be traced to systems that don’t fit the needs of the business.
Determine first if you really need one. It also involves substantial cost. So, carefully consider the benefits that an ERP will provide to your business over a defined period. If the answer is yes, follow these 3 steps for a successful project:
- List your requirements
Identify what functions you need for an ERP system to perform. This is important to choose a supplier whose systems could meet your requirements.
- Evaluate systems
Once you have chosen potential vendors and they reply to your request for proposal (RFP), grade their proposals based on your requirements. Also, compare the cost of the systems including the ongoing maintenance fees. Then, you can invite them to demonstrate their systems to your selection team.
- Select your system
In your selection process, rate the pros and cons of each system as they demonstrate it to your company. See how their system performs the most important tasks for your business. You can also seek the help of an outside consultant to help you in the selection process.
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