7 Smart Cost Strategies for ERP Selection
The aim ofan ERP software implementation is to increase efficiency of business processes and significantly reduce operating costs. Below are some Smart Cost Strategies to follow in the early phase of implementation with which you can minimise and control your overall cost of ownership, more effectively manage your business resources and increase the return on your investment. With todays business climate with uncertainy over exchange rates, you need to future proof your company and provide a solid, reliable platform for growth.
Select the Right SoftwareYou should begin with analysing what you really need in an ERP software solution. Whatever solution your business decides to go for, they key to success lies in choosing a system based on your specific requirements, not concentrating an all the functionality you may not even utilise. Below are a few points to consider when making the choice, which it’s important to remember will be the foundation of your business for the next three-seven years:
- How much time do you spend on manual processes that are labour intensive?
- How easy is to retrieve the information you need from your systems?
- How flexible are your businesses processes?
- Do you need a system(s) that works in line with your business or is the business happy to work in line with the system(s)?
- Does your business need a system that can do most tasks, or are several systems necessary to complete your processes exactly as you require them?
Select the Right DeploymentDeployment of an ERP solution for your business will depend on many reasons but you need to consider the one focuses on cutting the costs down. There is software available for both on-premise and cloud. The difference between both types is that you pay for an on-premise ERP software along with an additional cost of hardware setup and maintenance whereas cloud is generally provided on software-as-a-service (SaaS) basis for a fixed monthly fee. Read our case study on Saas Based Remote Inventory Mgmt. System
Follow a Defined MethodologyAn experienced ERP vendor will understand your business requirments and propose a suitable implementation methodology that has already been successfully used. Using an already defined and structured implementation process reduces risk and wastage of time in monitoring and controlling the project especially during the execution phase. Following this strategy also helps in preventing the project from stalling unnecessarily by paying attention to the most important steps. Read this to find how a UK based wholesale distributor benefitted from an ERP solution.
Use Concurrent LicensingOpt for limited licenses. User licenses for ERP software are normally priced on concurrent basis, meaning, you don’t need to pay for all the users but only for the ones that use the system simultaneously. This way you can scale down the costs by only paying for the users who log on at the same time.
Purchase only Useful ModulesGetting modules that aren’t useful to your business at all or maybe in little ways can impact the overall pricing. For example, your business will need an advanced e-commerce module to meet your needs but you are not yet ready to use those features. Wait until you are ready and add it to your agreement at that time.
Control Maintenance CostsSoftware maintenance basically includes keeping the system updated with important ehancements and zero bugs. Not keeping your ERP system updated or letting the issues unresolved for a longer time can be expensive. You need to get a service agreement from your ERP vendor who would provide timely upgrades and updates that would, in the long run, save you time and money.
Follow ‘Train the Trainer’ ApproachTraining every user of the system can increase total costs. Instead, get a few of your key employees trained and allocate them the duty of training other users. This way those key employees can get a better and deeper understanding of the software, save you extra training costs and reduce future reliance on your ERP provider. Did you know that high-growth SMEs running ERPs have 11% lower operational costs? Silver Touch Technologies better understands where your industry’s future is headed and will provide a suitable software solution that best fits your requirement. With ERP solutions we help SMEs to cut costs, lower overheads and drive profits. Contact us today on +44 – (0) 203-872-5140 or e-mail at firstname.lastname@example.org and get a free SAP Business One demo today!
An experienced business leader, heads the UK operations of Silver Touch Technologies Ltd. With 15 years of experience in the industry, he has set the track record of delivering transformation and revenue growth with SAP Solutions.