Consider these 3 critical factors when choosing ERP
Beware of ERP solutions that are designed to serve numerous verticals — instead of your industry specifically.
«If you select an ERP product that is used extensively by other companies in your industry, you likely will run into fewer complications» Tognoni said. «If a product is not built specifically for your vertical, more than likely, you won’t be able to do automation very well. Your company will be forced to do a lot of things manually. Above all else, choose a solution that fits!»
As a growth tactic, midmarket ERP vendors will expand their target market. Similarly, many of the larger ERP companies will sell their broader ERP products to a lot of different types of companies. «Many vendors will try to ‘verticalize’ their products» Tognoni said. «There won’t be anything substantially different in the product, except maybe a few fields, workflows, or an add-on application, but they will still call it a vertical solution. That’s very different from a product that was built for a vertical from the ground up.»
When choosing an ERP solution, take a look at the geographical location of the customers served by the ERP vendor.
You want an ERP system that is designed to take into consideration the specific regulations of your country? If these specifications are already addressed, it represents a commitment from the vendor that they will continue to ensure the system remains compliant. What you’re avoiding is the need to make add customizations at a later date, or worse, on a regular basis.
It’s advised to avoid the “localized” products. A local vendor is much more likely to provide a more complete and simple solution.
Avoid complications, extra expenses
A product that works will produce the lowest total cost of ownership over time.