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4 tips for choosing the right ERP system

4 tips for choosing the right ERP system

An ERP system is designed to streamline a company’s functions and operations. It can significantly help a company by reducing inaccuracies in various tasks and saving much of its time and workforce. However, when choosing a new ERP system, there are many factors that one needs to consider. Failing to do so may lead to choosing software that can cost the company. Here are a few crucial tips for choosing the right ERP software:

1. Determine the requirements of the business
Before choosing an ERP system, the first thing to do is consider the company’s requirements. One needs to determine which departments and operations of the company need the support of this new software. Along with that, one must also determine all the functions they need for this new ERP system. For instance, some companies may need a cloud-based ERP system for better functioning. However, since systems with cloud support cost more, smaller companies may need to choose a more basic version of the software as per their budget. A company must determine such requirements before choosing a new ERP system.

2. Seek recommendations from other organizations
Since many ERP systems and vendors are on the market, it can take time to choose the right system. An excellent way to narrow the considerations is to get recommendations from other companies and organizations. Employees in charge of choosing the new ERP system can seek references from their friends who work in similar organizations.

3. Check if the ERP integrates with other software being used
Another essential thing to check before choosing an ERP system is if it integrates with other systems and software that a company is using. For instance, suppose a company is already using some project management software. If they want to continue using it along with the new ERP system, they need to look for an ERP system that can integrate with their existing project management software. This way, the company would not need to spend extra hours shifting the data from their old software to the new one.

4. Consider the ERP vendor’s reputation
As mentioned earlier, there are currently a lot of different vendors offering ERP systems and software. One would need to research the vendor to make sure that one is choosing a trusted vendor and efficient software for their company. One should check the vendor’s website to see how long the vendor has been in business. They can also check online customer reviews of the vendor and their software. Besides that, one can take the help of some (reputable) websites that provide annual rankings of the best ERP software and vendors.

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