Companies are investing a great deal of capital in ERP (Enterprise Resource Planning) solutions but fail to utilize them to their full potential. With these eight solutions, you can avoid overspending, losing control of your ERP system, or trashing the whole system and starting from scratch.

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1. Not all ERP consultants have your best interests in mind. With hundreds of ERP solutions available, it’s crucial to find a consultant that isn’t working for one of them. Most sales consultants can find a way to fit their system into your company just to make a sale. That doesn’t mean it’s the best solution for your business. Sales consultants are motivated and incentivized to make a deal. Ensure your money is spent on a solution you can use. Find an expert not associated with a particular solution.

2. ERPs are not one-size-fits-all. A common mistake is purchasing a system that doesn’t mesh with the systems already in place inside the business or selecting one that offers many features the business doesn’t need. Discuss with the vendor or a consultant your implemented technologies and the goals of an ERP for your company. Don’t get sidetracked by bells and whistles you might never need.

3. Hidden implementation costs can result in poor execution. Because ERP solutions are highly customized, it’s vital to have an implementation plan with your vendor and discuss all prices and expectations before closing the deal. You will want to have a designated contact person available during the implementation process to help overcome any obstacles and ensure successful execution.

4. Understand the “E” in ERP. Remember, the “E” stands for enterprise. These systems are designed to extend across all aspects of a business to ensure all departments can work together. The biggest mistake is not including all departments in an ERP implementation.

5. Training is key. When purchasing an ERP, discuss the cost of organizational training. Many ERP vendors offer it separate from the software. Plan ahead and budget for proper training, so all facets of the newly implemented system are utilized by staff and management. 

6. ERP improves customer relations. To get the most out of your system, make sure it works with your existing customer systems to share data. Only 19% of all companies using ERP solutions have it integrated with their customer solutions. Don’t be in the majority missing out on the benefits ERP provides to your customers.

7. ERPs manage more than accounting data. An ERP can track employee KPIs. If you are not using your ERP system to set goal metrics and monitor progress, you miss a core benefit to a business. Not only can you track performance, but you can also see strengths and weaknesses to help create more employee engagement in the workplace.

8. Upgrade on time. Because of the cost associated with an ERP system, it may be tempting to delay upgrades and changes. This can be a costly mistake that stunts your business growth.

 

Before investing in an ERP solution, make sure you work with a qualified consultant to determine which system addresses your company's custom needs. This way, you’ll receive a better ROI on your purchase and start seeing results upon implementation.