How to Evaluate an ERP System

Struggling with inaccurate inventory tracking? Having a hard time with month-end close? Working with a legacy system that's slowing you and your team down? Sounds like you need a new ERP.

But going through the vendor selection process can seem like a monumental challenge. It's hard to know what questions to ask, who should have a say in the platform you pick, and what features you might need.

Luckily, we have a few tips for evaluating an enterprise resource planning system that can help guide your decision and ensure a successful implementation. Read on to learn why ERP selection is critical to modern businesses and how to make an informed choice.

Why ERP selection is critical to your business

Think of your ERP as the heartbeat of your company. It needs to be pumping efficiently to maximize output.

If your ERP is lagging, your whole organization follows suit, disrupting supply, distribution, and inventory. Eventually, these issues pile up and begin to negatively impact the customer experience. And at some point, you'll start losing revenue.

But a great ERP makes everything run smoothly, centralizing your data and updating it in real time.

With a sound ERP, your operations team can better understand how long things take and how to optimize their workflows. Your finance team will have access to reports that can uncover revenue-generation or cost-reduction opportunities. And your IT team won't be stuck troubleshooting and fielding ERP questions.

Basically, the healthier your ERP is, the better your company runs.

What to consider when you're shopping for an ERP

To reap all the benefits of an ERP, you have to make your decision carefully. Here are a few of the most critical things to consider during the procurement process:

• Company size. The size of your organization plays a large part in selecting an ERP. For example, SAP and Oracle are tailored to large companies like the Amazons of the world. Epicor, on the other hand, is tailored to small to midsized manufacturing companies.

• On prem vs. cloud deployment. Cloud-based ERPs have automatic upgrades but often have limited customization capabilities. And some clients want full control over their systems, customizing and upgrading when and how they want to. In those cases, on prem ERPs are the way to go.

• Specific functionality. When selecting the best ERP for your organization, be sure to research the functionality of the ERP and what is offered in relation to your respective industry. Some ERPs are built specifically to serve retail, manufacturing, and distribution companies. Other vendors offer slightly different ERP products for each industry. For instance, Epicor has different products tailored to specific industries. Profit 21 is tailored to distribution, Epicor ERP is tailored to manufacturing, and Eclipse is tailored to plumbing and electrical distribution.

• Ability to bring in an implementation partner. Your IT team already has a lot on their plate, and most IT leaders don't have enough experience with ERP implementations to do it successfully without assistance. Making sure that the ERP you choose is conducive to bringing in outside partners is key.

Staffing firms like can help companies source and recruit the right talent not only to implement ERPs, but also to train ERP users, run effective change management, and offer long-term support.

Write down these requirements on paper and score each platform immediately after your demos. This exercise will help you narrow down your list, and soon, one or two leaders will start to emerge.

If you can't break a tie, try reading online reviews and chatting with colleagues who have used or are currently using the ERPs you're considering.

Get started on your ERP journey today

Choosing an ERP system is no light decision. Be sure to do your research, ask the right questions, and speak with industry experts.

And if you find yourself in need of niche talent to implement an ERP or provide support to your existing environment, reach out to us. We have experience placing professionals who've drastically transformed our clients' ERP environments and are ready to help you get the same results.

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