4 Hidden ERP implementation costs your vendor won’t tell you about

ERP selection for a growing business is a long and winding process. You select a vendor, you analyze the costs and when you get quotes back from vendors, you’re overjoyed at the low cost of implementation services. We regret to burst your bubble, but if it looks too good to be true, it probably isn’t!

One of the biggest mistakes most SMEs make is not realizing that low ERP implementation quotes often come with hidden expenses, which will wreck their budget later. Here’s are a few hidden costs to keep in mind if you’re selecting a small or inexperienced ERP partner so that you don’t end up paying a bomb at the end of the implementation.

    1. Alterations in the initial project scope
      During the entire course of an ERP implementation, there can be minor or major changes in scope. But when your ERP vendor doesn’t clearly outline the scope of the project, you can be in for a nasty surprise that will cost your business time and money. When your ERP vendor doesn’t provide a detailed description of the scope and changing costs of the project, chances are that your vendor doesn’t have a formal methodology or quality assurances for ERP implementations. So, when you’re expecting a go-live by a certain date, it may not happen, adding to more downtime and losses.
    2. Track record of the vendor
      When you opt for small ERP vendors to handle your complex business implementation, you must consider the fact that they may not be experienced in handling the complexities that come with the big implementations. Before entrusting your business in their hands, be confident about the success rate of your vendor with similar implementation for other businesses. If risk factors are not adequately managed for the project or if the company’s track record of successful implementations is blotchy, you could be in for serious trouble and your business will end up paying a heavy cost.
    3. Costs related to employee training
      When you decide to hire an ERP vendor, have a detailed discussion about the inclusion of training costs for your employees as part of the implementation costs. One of the crucial aspects of adopting a new ERP software is ensuring that your employees know how to use the software.
    4. Additional software maintenance costs
      Another important factor your ERP implementation estimates should include annual software maintenance costs. When you choose the top-notch ERP solutions such as SAP Business One, you don’t have to worry about the updates. But in all the other cases, you will require system updates to ensure that you have access to the latest features and functionality. Make sure that your vendor is clear about how much these costs will be.

With Isys Techworks, you don’t have to worry about the hidden costs and all other implementation details. Our deep technical knowledge combined with many years of experience in ERP implementation, allow us to work with clients from a diverse range of industries in South India including financial services, consulting, manufacturing, construction, textile, retail, packaging, healthcare and various others. Request a free demo right away!

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4 Incredible ways ERP supports manufacturing companies

Manufacturing is a meticulous process in itself and to top it up if you have to worry about management, your job will only get more complex. That’s why most small and medium-sized manufacturing companies are now switching over to ERPs. They provide a systematic way out with complete integration of all the company’s core business processes in an up-to-date and real-time system.

You might wonder, what role would an ERP system play in your manufacturing business? But as your business grows, processes will become more complicated. There will be a substantial increase in financial expenditures, payroll will get longer, project management becomes more complex and supply chain management is a monumental task. ERP systems like SAP Business One provide solutions to these problems and more. Here are five ways that ERP systems benefit manufacturing companies:

  1. Supply Chain Management
    One of the most important tasks in manufacturing companies is to maintain a balance between suppliers and shipment. Perishable raw materials must arrive on time and under the right conditions to prevent inventory loss. Any surplus might end up in storage problems and more.Businesses need to ensure a streamlined supply chain to deliver the right goods to the right customers by regulating these processes. ERP systems help you resolve supply bottlenecks, automate workflow, eventually leading to an increase in customer retention and enhancing supply chain flexibility.
  2. Warehouse Management
    Storing is not as easy a task as it looks. With an ERP system, companies can improve their product storage systems to augment efficiency so that they can easily locate these products later when required. They help maintain a real-time catalog of merchandise and information about each.Having a system that streamlines all your stored products can help you assess how quickly products should be moved, which products will expire at what time, and the most effective way to store them. Warehouse storage management isn’t as upfront as one might assume. Therefore, you need an efficient system that can do all the tracking and updating work on your behalf so that you have a fair idea about what needs your immediate attention.
  3. Quality Management System
    Another important step in any manufacturing process is ensuring quality. ERP systems allow your managers to place inspection systems, checklist modules and quality control measures through a single system, through which quality control becomes easier.If you have a large manufacturing plant, a single streamlined system is indispensable. You can help every worker and machine on the line to react promptly to new changes and rules, which is crucial for a dynamic production facility.
  4. Advanced Planning
    Every business needs a reliable prediction system that would help them plan for the future. Customer requirements will vary throughout the year. Staying ahead of the curve and anticipating the demand and providing them with the right product at the right time is what advanced planning is all about. ERP provides detailed data about the changing tastes and preferences of your customers and helps you keep up with the changing patterns over time. It allows your firm to create production schedules, plan materials and capacity, utilize the resources, and connect with suppliers and the warehouse without breaking a sweat.Studies have confirmed companies that implement ERP systems successfully end up in accomplishing operational improvements. This includes operational cost savings, increased efficiency and a booming company. Wait no more. Book your free demo today!

5 keys to choosing the right ERP for your business

There are hundreds of ERP options in the marketplace today and selecting the right package for your business can be a tedious task.

Most companies think that any software will work and their organizations will simply adapt to the functionality of the software. But the most publicized ERP failures show that this isn’t the best solution. Moreover, since ERP is supposed to be a transformational business initiative providing key competitive advantages to your company, the decision shouldn’t be taken lightly or made without acquiring complete information.

So, how do you find the ERP solution that’s going to be the best fit for your organization? Here are five crucial steps to help you choose the right ERP software for your organization. Take a look.

Conducting review and analysis

Before you choose an ERP solution, you should first define your current business processes, pain points, and strengths to understand which areas need help. In this analysis, you should also include what you think your processes should look like in the future and the corresponding business requirements. These processes and requirements should be addressed by the solutions provided by potential software vendors to demonstrate their product’s capabilities within the context of your business needs.

Determine the total cost of ownership

One of the major factors that you should take care of while purchasing an ERP solution are the ‘hidden costs’. The ERP software sales reps are usually interested in downplaying the costs and risks associated with purchasing their software. So, make sure that you are aware of all kinds of hidden costs associated with ERP, including implementation costs, hardware upgrades, backfilling your project team resources, software maintenance, and so on.

Assess the technical fit

Although ERP is mostly a business rather than a technology initiative, it is imperative to determine if the potential software solution will align and integrate with your current infrastructure. A good ERP solution should be able to integrate with your present architecture seamlessly and help you work on

Develop a realistic deployment plan

The vendor implementation duration estimates are usually just a way to make a sale. Some vendors say they’ll do it in a month while others are ready to do it in a week. So, it’s crucial to develop a comprehensive project plan that includes not just the activities required to install the software, but the ones that are required to ensure that the solution is fully functional, tested, and known to end-users. Before making your final software decision, you should have this plan in place so that you can fully comprehend the cost and resource commitments required to make the project a success. Your deployment project plan should include everything from business process and workflow design to data migration, conference room pilot, multiple test iterations, training, and key organizational change management activities.

Track the potential business benefits of the new system

Your ERP is of no use if you don’t use it to measure the growth rate of your business. If you’re looking at ERP as a way to reduce costs, increase revenue, or scale for growth, then you should estimate and measure benefits against these metrics if you are going to realize the full potential of your ERP.

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