ERP: Supplier Gap Analysis

Chances are you want to invest in an enterprise resource planning (ERP) system to save your business money by increasing productivity through automation. However, to many businesses simple processes become harder because of an off the shelf ERP system. A decrease in productivity and profit due to new software is more often than not the result of miscommunication between the business and the vendor.

Although it's true that business software exists to reduce turnaround time, productivity and profit, standardised software can have the opposite effect. It is therefore very important to look for ERP software that adds value to your business.

The key to finding a good ERP system lies in finding a good supplier. It's wise to interview potential vendors before deciding on the best ERP solution for your business.

When interviewing potential vendors, look out for the following:

1. Your needs

It is a salesman's job to make his product seem ideal for you, so be careful not to buy a pitch that is worth more than the system you're buying. Be sure to draw up a user requirement specification that stipulates all your needs and requirements. Ask the vendor how his ERP system can be customised to address these challenges.

2. Pre-installation research

A good ERP vendor will spend some time getting to know your business before installing software. If a vendor offers to do an installation before looking at your current business processes, chances are that the ERP system will not be the business solution you were looking for.

3. Revision

After your vendor spent some time at your business, it is important to relook your needs before you give the installation the green light. A good vendor will identify setbacks in your current system that you might have overlooked.

Ask the vendor to draw up a detailed list of technical specifications and have them quote accordingly. The technical specifications will ensure that you're not charged for services you didn't agree to from the onset. It also ensures that you have a checklist of things that were promised to cross-reference once the installation is complete.

The problem areas identified by your vendor, together with the frustrations you face in the day to day running of your business should become the foundations your ERP system is built on.

4. Integration

If you already have a software system and a database, your new ERP system should be integrated with the existing data to ensure that your business can continue with little or no interruption. Ask your vendor how he plans to integrate the new ERP system with your existing software and how he plans to preserve data integrity.

A good ERP system can do wonders for your business, but finding a system that is suited to your needs is not a simple process. Call QBCon today for more information on customisable ERP systems.