How can store owners ensure a smooth transition from a manual to a digital system?
9 Costly Mistakes Made By Fashion and Apparel store owners When Selecting an ERP [and How To Avoid Them]
What is an ERP?
Enterprise Resource Planning (ERP) software is a comprehensive solution designed to streamline and optimize commercial activities. It offers businesses a way to manage and process their data more efficiently. ERP systems offer the capability to unify various enterprise processes into a single unified application. Fashion and apparel store owners are often required to manage multiple locations, vendors, distributions models and customers. To simplify the store owner’s operations, they must select an appropriate ERP system that fits their particular needs.
Measurement of Successful ERP Selection
A successful ERP selection requires an analysis of the specific business needs, the measurement of the ERP’s capacity to support those needs in the context of cost, and an evaluation of the ERP provider’s post implementation support. Considering these factors will aid fashion and apparel store owners in making an informed decision.
5 Common Mistakes and Solutions in ERP Selection
Though the process of selecting an ERP system can seem daunting, below are five common mistakes and solutions which fashion and apparel store owners must consider before choosing a system:
- Failure to Identify Business Priorities: When selecting an ERP system, it is important to first assess and prioritize the particular needs, capabilities, and functions of the business. Failure to do this can lead to an ERP system that fails to meet all the necessary requirements.
Solution: Start by breaking down the functional requirements of the business. Map the identified requirements to the functional capabilities of the ERP system. This process shall result in a realistic expectation about the system.
- Too Much Focus on Modules: Many store owners focus too heavily on features that may not be as important and end up overlooking the actual job requirements.
Solution: To ensure successful selection, focus primarily on the core modules that support the critical areas of the business and identify the most important underlying functions, such as Automation, Product Formatting, Replenishment Analysis, etc.
- Selection Based on Price: Cheaper ERP solutions may sound appealing, but often lack the features and scalability businesses require. The advantage of a more expensive solution may be worth the additional cost.
Solution: An ERP system may be expensive upfront, but the return on investment should be evaluated over time. Selecting an ERP system based on its potential for future scalability, features, and cost-efficiency is more beneficial in the long run.
- Failure to Consider Post-Implementation Support: After implementing an ERP system, post-implementation support services such as training and maintenance services are often essential.
Solution: Fashion and apparel store owners must ensure that their prospective ERP provider provides post-implementation support or they may face unanticipated expenses.
- Delayed ERP Selection: The longer an ERP system is delayed, the higher the cost will be.
Solution: Fashion and apparel store owners should begin the ERP selection process early to ensure ample time for adequate system analysis before implementation.
Summarized Table of the Mistakes and Solutions
| Mistake | Solution |
|---|---|
| Failure to Identify Business Priorities | Map the identified requirements to the functional capabilities of the ERP system. |
| Too Much Focus on Modules | Focus on core modules and identify underlying functions. |
| Selection Based on Price | Evaluate ERP system with future scalability and cost-efficiency in mind. |
| Failure to Consider Post-Implementation Support | Ensure the prospective ERP provider provides post-implementation support. |
| Delayed ERP Selection | Begin the ERP selection process early to ensure ample time for adequate system analysis. |
Conclusion
When selecting an ERP system, fashion and apparel store owners must identify their business priorities and evaluate the ERP system accordingly. It is important that store owners identify the underlying components required for a successful ERP implementation, as well as the associated post implementation services which may incur additional expenses. Understanding these mistakes and solutions in ERP selection will help fashion and apparel store owners make the best decision for their business.
