Steps to Buying ERP

Step one

  • Identify the needs of your organisation and the users. It is vital to get the input of all users of the proposed system or a representative of each department that it may effect.
  • Understand your requirements – this can be achieved by talking with perhaps two or three ERP providers.
  • It might be a good idea to test or pilot any system before purchase in order to see how effective it is. It is important that at the very least a demonstration is given of the modules of the ERP system that the organisation will potentially be using and to the relevant personnel.

Step two
Identify the right providers.

  • Use Conjungo’s ‘Find an ERP Supplier’ search facility at th etop right of this page.
  • Who has the experience of working with a company of the same size and profile as yours?
  • Does it have experience of working within the same industry type as your company? For example, the needs of a
  • lawyer will be completely different than those of a small manufacturing company.
  • How many similar installations have they made?
  • Ask for references from a couple of similar companies to ensure that the company is capable and reliable.
  • Ask to speak with a couple of their customers in order to see what benefits have been gained.
  • Get a credit check to ensure that they are financially stable. You can get this directly from the supplier details found from your Conjungo search.

Step three

Request a proposal from three or four of your preferred suppliers.

Step four

Select a proposal.

  •  Who best demonstrates that they understand your business and your requirements?
  •  Is the solution flexible and scaleable and therefore able to meet future demand? You don’t want to find out later that by  investing a little more money now you could save money in the long term.
  •  Is it cost effective? Does it demonstrate clearly the functional benefits – rather than telling a list of particular features, does the proposal clearly show what the benefits are? There is no point on spending money for system with features that     are of no benefit or that you will never use!
  • How much will the software licences cost?
  • How much will software support cost?
  • Can any savings be made by agreeing a multi-year contract for support?
  • How will your potential supplier support and maintain your system afterwards?
  • How much will this cost?
  • What is the other costs for example, consultancy and training. These are frequently under-budgeted but are very important.
  • Have you spoken to a couple of your preferred suppliers’ customers?
  • Agree on financial terms – you may be required to pay a deposit but do not pay the whole amount in advance of delivery.