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.
Enterprise resource planning (ERP) software delivers the ability to manage and standardize business processes across your entire organization. The increased efficiency from this can generate an impressive ROI. But there are hundreds of ERP vendors to choose between. more
The hidden costs associated with implementing an ERP system can add up quickly. Businesses frequently find that these projects go over budget despite being well planned. You can avoid this problem by preparing for these overlooked expenses ahead of time. This allows you to develop a more accurate budget and even reduce some of the costs. more
Although the SaaS model is becoming increasingly prevalent for all types of business software, many organizations have been reluctant to switch to SaaS for ERP (Enterprise Resource Planning) application modules. The thinking goes that ERP functions are too important to be left to the cloud. more
Among all of the business software applications necessary for business operations, ERP is undoubtedly one of the most important. Making the wrong selection can have a disastrous impact on your accounting, manufacturing, and supply chain. With so much at stake, it is crucial to make a well-informed decision. more
Selecting an ERP system is no easy task. You have to select and configure a system that fits your exact business needs. Getting it right means a myriad of benefits, from increased productivity to reduced costs. Getting it wrong can be a quagmire. Our new comparison guide gives you the data you need to make an informed decision, all in one easy-to-use Excel file. more