4 Questions to Ask ERP Vendors

July 12, 2021

1. How much time will it take?

Don’t underestimate the amount of time it will take to implement a new system and get your staff up to speed using it on a daily basis. By nature, ERPs can be complex to configure and customize to your business.

Depending on the type or age of the system you select, it may offer lots of customization options or want you to handle your business in a narrowly defined way. In addition, some systems were originally designed for specific industries and fitting them to your own needs might not be as simple as you’d like.

As a result, you may find your team spending more time than expected discussing your current processes and how you want to (or need to) change them.

Your business operates the way it does now for various reasons, maybe not all of which you would do the same way if you were starting over. In a way, implementing an ERP is a way to “start over” and so it’s natural that some evaluation of current practices will occur. Handled well, this can be a real benefit to your business.

Make sure you understand the limitations or requirements of the system going in, and what happens if you decide you can’t or don’t want to change your processes to fit the system, rather than the other way around. Part of the value of selecting the right platform and vendor is that the vendor has likely dealt with businesses like yours before, and can make process recommendations along the way that you might not have considered or had to deal with yet.

2. How much time does my staff have?

Another thing to consider is how much time you and your staff currently have to work through process changes, and how much time they will have down the road. Working through implementation with your vendor of choice, training time, and entering the data once you’re up and running all add up.

While there are low cost ERPs on the market, the adage you get what you pay for is sometimes very true. Low cost likely means more time on your side to “self-onboard” and figure out the system. You might not have access to expert advice, or wait a day or more for your support ticket to get processed. Low cost options often have lots of “upsell” hooks, so your total cost a year later could be higher than expected.

Systems that have been on the market for decades may have lots of features, but also might be harder for your staff (especially younger / more mobile-oriented staff) to deal with on a daily basis.

It’s common for some ERPs to require long term contracts or “maintenance plans” that can make the total cost of ownership less clear upfront. In addition, desktop or on-premise systems may require changes to your internal network in terms of hardware, wiring and security hardening, and product and operating system patches – all of which may require time from an internal IT department or from other vendors.

On premise systems do provide benefits, such as potentially being usable even if internet access is not available. These days it’s probably rare for a business to be able to operate without internet access, however. On premise solutions can be at greater risk for damage from natural disasters or ransomware attacks.

Cloud-based systems can be susceptible to the kinds of broad internet outages that do sometimes happen, and take multiple services offline when they do. With the trend of technology as a whole towards everything being in the cloud, this will likely be more and more common, but also something that affects more companies and industries. Cloud-based technology does provide ways to mitigate these issues, and the trend is that this will continue.

3. What is the ongoing cost over the years?

It’s common for some ERPs to require long term contracts or “maintenance plans” that can make the total cost of ownership less clear upfront. In addition, desktop or on-premise systems may require changes to your internal network in terms of hardware, wiring and security hardening, and product and operating system patches – all of which may require time from an internal IT department or from other vendors.

On premise systems do provide benefits, such as potentially being usable even if internet access is not available. These days it’s probably rare for a business to be able to operate without internet access, however. On premise solutions can be at greater risk for damage from natural disasters or ransomware attacks.

Cloud-based systems can be susceptible to the kinds of broad internet outages that do sometimes happen, and take multiple services offline when they do. With the trend of technology as a whole towards everything being in the cloud, this will likely be more and more common, but also something that affects more companies and industries. Cloud-based technology does provide ways to mitigate these issues, and the trend is that this will continue.

4. How important is customer service and support?

Implementing an ERP system is a significant undertaking for any business, and having reliable customer service and support throughout the process and beyond is crucial. It's essential to inquire about the level of customer service provided by the ERP vendor and their commitment to supporting your business.

Having someone in your time zone who speaks your language can be immensely helpful when it comes to dealing with complex concepts or addressing urgent issues. Prompt and efficient customer service can save you valuable time and prevent potential disruptions in your operations.

Ask the ERP vendor about their support channels, response times, and availability. Are there dedicated support teams or account managers assigned to your business? Will you have access to technical experts who can assist with troubleshooting and provide guidance? Understanding the vendor's commitment to customer service ensures that you'll have the necessary support to overcome challenges and make the most of your ERP system.