There are several significant factors to be considered when negotiating for the best price quotes for an Enterprise Resource Planning (ERP) solution, which is essentially a software program with a database engine, server, and selected modules, accessible to and shared between a diversity of departments—ideally all of them—within an enterprise. There are a number of hidden costs which should be elucidated and accounted for at the time of price negotiation, as well as facets of installation, implementation and use which directly affect the particular price quote of a vendor. These factors are generally enterprise specific and vary considerably between businesses.
The specific number of users, both current and projected, plays a large role in the determination of a price quote for ERP, as prices tend to be lower for less users and increase accordingly with greater amounts of users. Greater numbers of users tend to increase the expenditures for software and service, particularly when utilizing concurrent user access plans offered by certain vendors. It is best to have a firm idea of the projected number of users for at least two years in advance to avoid future unforeseen costs and to get the best price quote.
There are essentially two types of ERP modules (which are generally department-specific): standard and advanced. Advanced modules offer a greater number and variety of features, which may not be necessary for certain enterprises, particularly those new to ERP software and service and which may be small or mid-sized. Larger and more sophisticated businesses may need the more advantageous features associated with advanced modules. Regardless of the selection, this choice will greatly influence a vendor’s price quote, which is why enterprises should research what particular capabilities they’ll need.
Training can oftentimes be an overlooked cost when budgeting for an ERP solution, although there are a fair amount of vendors which include a degree of training in their service and in their price quotes. It should be remembered, however, that training for ERP requires employees in various department to gain a greater understanding of the scope of work done in other departments, which could also affect inter-office training outside of that specifically related to the ERP solution. Negotiating the amount of training and exact degree required for a specific enterprise should be completed along with that for the other facets of purchase considered in a price quote. Additional factors to be considered include upgrades and customization implementation, both of which can be allotted for in the price quote and which should be determined in advance of purchase.
ERP is the most complex—and costly—business software product available today. Many businesses struggle to implement an ERP system without breaking the bank. Read this guide to learn more about what you can expect in terms of cost—and how to save money during the implementation process. more
Many retailers are seeing rising expectations among their customers for faster and better service, wherever they—or their customers—are based. To meet these expectations, you need to ensure that your employees—wherever they are—can access your business system, and communicate quickly and efficiently with customers and employees at other locations. more
With the immense changes the retail industry has undergone and continues to face today, there are mistakes that you as a wholesaler simply can’t afford to make. Certainly, one of these—perhaps the greatest of all in our technology-driven age—is choosing the wrong retail business management software for your business. more
Does your current software give your retail business the visibility and flexibility you need to be responsive and competitive? Or has your business outgrown your business management system? more