5 Things You Need to Know Before Buying a (New) ERP System

A good ERP system is one of the most important tools a company has. A good system automates a large portion of your business processes, reduces your costs, and makes your company more efficient. The wrong system will only cause you headaches.

And “wrong” doesn’t necessarily mean “bad.” Sometimes it just means it isn’t suited to your company or your industry. So buying an ERP system isn’t a decision you make on a whim.

In this blog, we'll explain what you definitely need to know before you consider purchasing a new ERP system.

Be specific

An ERP business solution can be very general or very specific. So you get what you ask for. Before you meet with your ERP vendor, you need to know exactly what you want. Do you want your ERP system to focus primarily on accounting, inventory, and financial processes? If so, go for a basic package. You can always add updates and add-on applications later, if needed.

Does your business have specific needs? An online store with thousands of items that needs to be linked to your inventory? Empty container management or maintenance contracts? If so, your solution needs to integrate seamlessly with those needs. So make sure you know exactly what you need.

So don't let anyone talk you into buying something you don't need. An ERP system that automatically makes your coffee is a nice gimmick, but every extra application costs money and can go wrong. So, back to basics!

Basic package or comprehensive package?

We've already told you to analyze your company's needs. That's not easy. And predicting the future of your industry is completely impossible.

So you have to choose between implementing an entire ERP package right away or starting with a basic package that you can expand later. Both options have their pros and cons. A full package saves you from having to make adjustments later on and avoids potentially costly upgrades. But you run the risk of buying features you don’t need.

A basic package (with possible add-ons) not only gives your employees the chance to gradually get used to the new system, but also allows you to make informed choices about certain features. However, this sometimes means you’ll discover that you need an application that your ERP lacks—and that comes with additional costs.

Analyze Your Business Processes

You need to analyze not only your business needs but also your business processes. If your business processes aren’t running the way you want them to, it could be due to your ERP system. It could also be due to the processes themselves. It would be a shame if your brand-new ERP business solution were tailored to outdated processes.

It’s important to keep in mind that sometimes you have to adapt your business processes to what your ERP system can and cannot do—and not the other way around. With a new system, that no longer has to be the case.

Are you ready for the cloud?

Cloud hosting is the future. Businesses and consumers are increasingly relying on the cloud to keep their files and processes secure and accessible. But some still prefer to keep everything on their own servers. Systems such as Microsoft Dynamics NAV You can certainly handle both, but it is an important decision. On the other hand, if you choose to Microsoft Dynamics 365 Business Central, you'll receive a comprehensive package that's available exclusively in the cloud.

Is your company ready for the cloud? Is your IT team ready? And what about your employees, who will have to work with it? Ask your team for their input before making a decision. And, of course, consult with your ERP vendor.

Training

Change takes time. A new ERP system will make your company more efficient, but your employees need time to learn how to use it.

So make sure your team receives the necessary training. And give them the time they need to learn. An ERP investment requires both time and capital. When you do the final calculations, it’s definitely worth it.