Comparing ERP Systems: Time Consuming but Necessary

Enterprise resource planning systems (ERPs) are powerful tools for companies of any size; however, to reap the most benefits, it is crucial that the company choose the best solution for its needs. Compare the various ERP systems available, but begin by determining your company’s needs and requirements. Solutions offer a wide range of functionality, are available as hosted or on-premises installations, and vary significantly in cost and upfront investment. A number of websites offer detailed comparisons of the most popular solutions. The following are just some of the key points to consider.

Intercommunication

Inter-department communication is important to most businesses, but it is absolutely critical to some. Comparing the ability of ERP programs to facilitate communications is crucial when selecting an appropriate solution. Industry-leading solutions offer robust data transfer tools that empower strategic collaboration between departments in the largest organizations. On the other hand, a small business may not require complex interdepartmental communication and should not pay extra for such tools.

Financial Management

Obviously, there will be significant differences between the financial reporting requirements of public and private enterprises, between large and smaller organizations, and between national and multinational corporations. While each company must monitor profits and expenses, investing in an expensive solution that provides more functionality than you need can reduce those profits without delivering a short- or long-term return on investment (ROI). Therefore, choosing an ERP system with the financial management capability you require is a critical part of the comparison process. It is important to select a solution that meets your key requirements, but also one that does not overwhelm users with extra features that only get in the way.

Inventory Management

Almost any ERP system includes an inventory management module with tools to efficiently track and optimize a company’s inventory. If your company maintains raw material or finished goods inventories, the tools can mitigate tracking errors and lower inventory costs. In combination with manufacturing and logistics modules, the inventory module can track products throughout the manufacturing and distribution processes. Again, consider your organization’s needs. Just-in-time manufacturers and retailers must have robust inventory management functionality. Distribution companies require extensive tracking features and the ability to update customers on the status of orders. Other businesses may only require the ability to keep an accurate database of their current inventory.

Human Resources

The varying ERP requirements for companies’ human resources departments should be obvious. To choose the solution that best fits the needs of an organization, the size of the staff is a key factor. Organizations with more than 50 employees are subject to many federal regulations, including those of the Equal Employment Opportunity Commission (EEOC) and Occupational Safety and Health Administration (OSHA), which do not apply to smaller employers. The leading ERP solutions address those compliance issues; however, small-to-mid-sized businesses may want to consider less expensive solutions.

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