While ERP software can look the same when you start comparing features, it’s important to remember that one ERP solution can vary drastically from the next. In most cases, the variances are found in the vendors themselves. And if you aren’t asking the right questions, you’re not getting the information you need to make an educated decision.
Here are 9 questions to start with:
1. What’s Different About Your Product Offering?
The best question you can start with is this one. If the company doesn’t have an answer, then there’s clearly nothing proprietary about their solution. If they do give you an answer, listen carefully and ask yourself, “Is this really unique?”
Many vendors will try to sell their features as unique, when they’re really just wording something differently. The goal is to find an efficient solution that gives you a competitive advantage. In order words, you don’t want the exact same features as everyone else.
2. How Does Your Solution Help My Business Needs?
The answer to this question will tell you if the vendor has taken any time to research your company or listen to your pain points. They should be able to say something beyond, “Our solution will help you simplify your business processes.”
A good answer would be something like, “We can help you lower inventory costs by $100,000 per year by doing X, Y, and Z.” When a vendor says something like this, you can tell that they truly believe your business and their solution will fit well together.
3. What Additional Services Does Your Company Offer?
While the ERP solution is what you’re looking for, it’s helpful to know what other services and products the vendor offers. The reason is that you may have needs beyond the issues you’re currently dealing with. For example, what happens if you need to tweak a specific part of the system? Will they offer continuous optimization? Finding out this information in advance can save you a lot of trouble on the back end.
4. Can You Provide Me With Referrals?
It doesn’t matter if you’re hiring a plumber to work on a pipe clog in the first floor bathroom or investing in an ERP solution, referrals should be a mandatory part of your evaluation process. A good ERP vendor will give you access to a number of referrals so you can verify their track record.
5. What is Your Pricing Structure?
Pricing structures can vary dramatically in the ERP industry, so make sure you’re asking for details up front. Some vendors offer license-based pricing models, while others go with subscription-based pricing.
The subscription-based model will be much cheaper on the front end, but could end up costing more down the road. The license-based model will cost substantially more up front, but is more cost effective in the long run. There are pros and cons to both, but make sure there are no surprises.
6. How Does Product Training Look?
There is tremendous value in quality training. Some vendors will claim their platform is so intuitive that no formal training is necessary, but you shouldn’t feel totally comfortable with this. Comprehensive training is critically important if you want to maximize the value of your ERP investment. A good vendor will supply adequate training from skilled consultants.
7. How Quickly Will We Be Up and Running?
It’s smart to get a realistic implementation time frame so that you can set up reasonable goals. As you know, the faster you get your ERP solution up and running, the faster you’ll enjoy a return on investment.
The vendor may not be able to give you an exact answer up front – since much will depend on your current setup and what has to be done on your end to prepare for implementation – but a practical time frame should be provided.
8. How Often Do You Upgrade Software?
Some vendors will tell you that they’re committed to constantly upgrading and optimizing their ERP solutions, but are they really? The vendor should be able to pinpoint the last date they changed something and what they tweaked. If they can’t, then you should have some hesitations.
9. What’s One Aspect of the Software You’re Actively Improving?
If the vendor can’t answer the question, then it may show you that they aren’t as keen on ongoing optimization as they’ve led you to believe. If they do answer, then it provides insight into which aspects of the solution they take seriously.
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