How will digitization help a paper products business to maximize its return on investment?
9 Costly Mistakes in Selecting an ERP and How to Avoid Them
As a paper products store owner, you may already know the benefits of a good Enterprise Resource Planning (ERP) system. But, have you considered what mistakes you may make in selecting an ERP? Going through with a poor choice of an ERP can cost you time and money, so make sure you think through the selection process carefully before investing in the software. Here are nine of the most costly mistakes you could make in selecting an ERP and, most importantly, how to avoid them.
What is an ERP?
An ERP is a business management system consisting of integrated, automated software processes and applications designed to help streamline a business’s operational, financial and other processes. By streamlining all operational processes, the system creates overall efficiency, cost savings and the ability to quickly access real-time information, enabling owners to make informed decisions. ERP can be applied to any category of a business, but different ERP often tailor to specific industries.
Measurement of Successful ERP Selection
When selecting an ERP, it’s important to carefully examine the system and your own needs, assessing them against key criteria. This will include metrics such as functionality and compatibility with current hardware and software, as well as features and configuration of the system that will ensure a successful implementation.
5 Common Mistakes and Solutions in ERP Selection
To help you make sure you don’t make any costly mistakes during the ERP selection process, here are five of the most critical mistakes to avoid and how to solve them:
- Trying to Implement an Industry-Specific ERP Too Quickly: When selecting an industry-specific ERP, there are two major factors to consider: the company’s current software and the company’s future plans. Trying to implement an ERP that is too specific to your current operations could leave you unable to make adjustments should your needs change. Instead, look for an ERP that is configurable and not too restrictive.
- Failing to Include All Stakeholders: Before selecting an ERP, it’s important to include input from all stakeholders, so that everyone understands which features are critical for the system to have. This will ensure that everyone is in agreement about the system before purchase.
- Not Testing the System: The last thing you want to do is invest in a system that you don’t understand or hasn’t been adequately tested. It is essential to take the time to test the system to ensure that it meets your requirements.
- Ignoring Post-Implementation Support: Many companies overlook the importance of post-implementation support. Your ERP vendor should be able to provide vital support and training after the initial installation, so make sure you choose a vendor that offers this service.
- Failing to Plan for the Future: It is important to select an ERP that is scalable and can adjust to the needs of your company as it grows. Forecasting your company’s needs and ensuring that your ERP can meet them is key to its success.
Summarized Table of the Mistakes and Solutions
| Mistake | Solution |
|———|———|
| Trying to Implement an Industry-specific ERP Too Quickly | Look for an ERP that is configurable and not too restrictive |
| Failing to Include All Stakeholders | Include input from all stakeholders |
| Not Testing the System | Test the system to ensure it meets your requirements. |
| Ignoring Post-Implementation Support | Choose a vendor that offers post-implementation support and training |
| Failing to Plan for the Future | Forecast company’s needs and ensure ERP can meet them |
Conclusion
When selecting an ERP, it is important to take your time and carefully consider all aspects of the system. Avoiding the common mistakes that many companies make when selecting an ERP is key to ensuring that the system is both successful and cost effective. By following these steps and avoiding the common mistakes mentioned above, you can be sure that the ERP you select will be the right fit for your paper products store.
