Choosing an ERP system does size matter?

Size isn’t everything – or is it? When it comes to choosing an ERP system, many companies want the security of working with a large provider. That’s understandable, as selecting the right ERP system is a critical decision that can heavily impact a company’s future success. However, whilst it’s hugely unlikely that major ERP providers such as SAP, Epicor and NetSuite, are likely to disappear any time soon, there are plenty of other small to medium sized ERP providers with great software, impressive service and longevity. Their size and organisational structure often means that these providers can offer some major benefits to their customers that larger organisations can’t.

4 key questions you should ask providers when selecting an ERP system

 
Make no mistake, sourcing an ERP system, then going through the implementation process, can be a time consuming, costly and often challenging activity. We’ve lost count of the number of companies we have spoken with over the years who loathe (and that’s honestly not too strong a word!) their incumbent ERP system but can’t face the disruption of choosing and implementing another ERP system. That’s why it’s critical to get it right. And to get it right, there are several factors, in addition to the software itself, that you should consider when selecting an ERP provider.

1. Can they walk in your shoes?

 
Consider the company behind the ERP system. Are their culture and goals aligned with yours? You’re going into what’s most likely to be a long term relationship so you want to know that both you and your ERP provider are moving in the same direction, understand each other and have similar values. At E-Max, we work mainly with engineering and manufacturing SMEs who want to grow and develop their business. We’re a similar size to many of our customers, with comparable growth objectives and therefore we understand the issues SMEs face in their day to day activities, as well as the strategic challenges you are up against when trying to take your business to the next level.

2. Will they work in partnership with you?

 
How does the ERP provider view your company? Purely as a customer that they need to deliver a product to or do they see you as a business partner, with both companies contributing to get the best end result? Larger corporations rarely have the flexibility to operate in this way but smaller, more agile SMEs can and do. At E-Max, we’ve been working in conjunction with our customers for over 20 years, constantly seeking feedback, developing solutions to their problems and adding functionality that they genuinely need and can’t get from any other off the shelf ERP system. Although the term ‘working in partnership’ is overused and clichéd, it underpins everything we do at E-Max to the extent that we do sometimes wonder whether we should be offering to credit some of our customers on our software authors list!

3. Who owns the software?

 
And on that note, when choosing an ERP system, consider who is the author of the ERP software or code? Is it the actual ERP vendor or are they a middleman? Vendors who offer other companies’ software may not be able to make changes or developments to the software themselves but need to go back to the software company and schedule these in, adding time and layers to the process. Even the huge corporations, who do own their code, often find themselves in a similar situation, with customisation taking months and months to filter through. And we’re not even including time lost through miscommunication, with the involvement of multiple parties. E-Max Systems owns the code for all of our software and we continue to design, develop and support it in-house. We have a team of developers in our offices who can make changes as required, resolve coding issues and quickly write API links to specialised software.

4. How responsive are they?

 
It’s back to size mattering again! A Mini is so much more manoeuvrable than a juggernaut and it’s the same with businesses: the larger the organisation, the less agile it is. Most SME ERP providers have the flexibility to listen and adapt their software, their processes and their service in response to their customers’ needs. With less red tape, bureaucracy and organisational layers, requests can be accommodated and changes made in a much shorter timeframe. At E-Max we have purposefully maintained a flat organisational structure. All of our team are empowered to liaise directly with our customers and work with them to find the best solutions in the shortest possible time. We find this personal approach benefits both our customers and team members in terms of understanding each other.

There are, of course, many other considerations to take into account when choosing an ERP system, not least the software itself, the functionality it offers and its usability. However, when making a decision that will impact your business for years to come, it’s definitely worth taking the time to consider the above 4 questions.

E-Max Systems has been designing, developing and supporting MRP & ERP systems for manufacturing and engineering SMEs for over 20 years. To find out more about how we can work with you and help your company grow, visit our website, give us a call on 0808 109 2035 or drop us an email. Of course, if you’re ready to schedule a free, no obligation demo of the system in action, you can book here.