Small businesses that adopt an ERP solution often fail to take into account a variety of hidden costs related to the system. This can send the project over budget and sometimes even derail the whole implementation.
Many small businesses underestimate how much the training for the ERP solution is going to cost. This is mostly because the employees need to learn a full set of processes instead of how to use a different interface. Some individuals will quickly grasp the concepts, while others may take a long time before they can operate the ERP solution without difficulty.
The ERP software will need to be thoroughly tested before it goes live. This can take a great deal of time since the links between the ERP solution and other software will have to be created on a case-by-case basis. This can be mitigated somewhat if your employees run actual purchase orders through the system instead of using fake data.
You’re going to need to transfer corporate data from the old systems to the ERP solution. This can take a great deal of time, and a lot of the information may be outdated or unnecessary. The data may also need to be modified in order to match the processes of the ERP solution.
Travel costs are another potential hidden cost to consider. The person in charge of the ERP implementation will need to visit manufacturing sites and other branches when setting up the solution. If they’re located nearby, it probably won’t be that much, but if these locations are far away you’ll need to pay for things like flights and hotels.
An ERP solution provides an excellent opportunity to create a standard business model for all the different branches of a company. It can take a fair amount of time and money to do so, however, since the software will probably have to be heavily modified.
It’s often a good idea to hire ERP consultants who can answer your questions about the software. They’ll be able explain in full detail how the solution works and provide ideas about how to streamline the system. They don’t tend to come cheap, however, so you should take into account their fees when planning out the overall budget.
Many of your employees will not be available during the ERP implementation. They’ll be installing the product, testing it for issues, and learning how to use the system. You’re thus going to need to hire temporary workers to fulfill their duties while all this is taking place.
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