What is the choice of an ERP

ERP selection

ERP selection: Structured plan for efficient selection

Companies have been using ERP systems for years. It is therefore importantto select a suitable ERP software for the company and your own requirements. For which companies is an ERP system suitable, which criteria are important in the selection and how does the evaluation of the ERP partner work? Find out how the ERP selection can be carried out efficiently, inexpensively and with a satisfactory result.
 


What is ERP software anyway?

Enterprise Resource Planning is understood to mean software solutions that support practically all relevant business processes in companies. The software is based on a uniform database and ideally networks the departments that have been working with isolated solutions to date.

 

Who is ERP software suitable for?

While ERP systems were still reserved for large companies in the 1990s due to the high acquisition costs, the market has changed significantly today. As a result of digitization, the costs for the software solutions have fallen, while the benefits have increased at the same time. Today, ERP systems are used in numerous medium-sized and even smaller companies.

Specifically, the software solutions are particularly suitable for manufacturing companies of all sizes, which can be at home in a wide variety of industries such as individual production, the electrical industry or the process industry. In order for the system to be integrated into the company, there are certainly technical requirements, but these can always be discussed with the ERP provider.
 


What are the advantages of ERP software?

  • any scalability:ERP systems can grow with them and also process a large number of data records without any loss of efficiency.
  • Transfer of knowledge:Thanks to the central database, all the knowledge available in the company can be used with ERP.
  • more efficient processes:Also due to the central database, communication and work processes can be greatly simplified.
  • Transparency: ERP software creates interfaces between departments and makes work processes much more transparent.
     


These criteria must be taken into account when selecting the ERP

However, the software can only bring its advantages to bear if companies decide on a package when choosing an ERP that exactly matches their requirements. The ten most important criteria that project teams have to consider when choosing an ERP are:

1. Manufacturing type
Depending on whether a company produces unique items, series or variants, the ERP software must have different functionalities. When making a selection, it is therefore important to carefully check whether the software has important features such as growing parts lists, consignment stock or "extended workbench".

2. Detailed planning
An integrated APS module (Advanced Planning & Scheduling) can be an important decision criterion when choosing an ERP. For example, to be able to automatically adjust order sequences based on real-time data. In a market environment in which order networks are becoming more and more complex, urgent orders come in non-stop and the number of variants increases, this is extremely important when making a selection.

3. Logistics
Suppliers to the automotive industry in particular place high demands on ERP systems. This must be able to map just-in-sequence concepts and be able to be integrated into the entire supply chain in order to be able to meet the requirements for short lead times, adherence to deadlines and of course uncompromising customer orientation.

4. Product life cycle
Due to ever shorter innovation cycles, the effort for data documentation in product development increases. Here the project team should switch to an ERP system with efficient tools for product lifecycle management.

5. Master the flood of data
The amount of data has been growing steadily for years.Professional BI tools make this flood of data manageable and make it possible, for example, to provide important key figures and trends at the push of a button. In this way, medium-sized manufacturing companies can also gain important competitive advantages.

6. The software grows with you
The ERP solution should be scalable without any problems. Otherwise, high costs arise if, for example, companies hire additional project teams, set up new sales offices or expand abroad. Modern systems are multi-lingual and multi-currency capable, they master Consolidation for group accounting and are localized for different countries.

7. Open architecture
The ERP solution should open interfaces and offer stable connectors. This enables companies to exchange data with customers or suppliers quickly and easily.

8. Mobile
Modern ERP systems have to be mobile. This is the only way sales staff can access important customer or product data while on the go. In addition, the production processes are also relevant for the mobile strategy. For this reason, the ERP software should offer scanner solutions and support innovative shop floor applications - which are of course designed for industrial end devices.

9. Cloud
Especially the middle classbenefits from ERP cloud solutions. Because this eliminates the need to invest in the (expensive) technical infrastructure. Backups, maintenance, updates and the like are controlled automatically by the ERP provider.

10. Partner
Last but not least, the ERP provider should be understood as a partner. He should thank the company Competent advice and understanding based on years of experience. Only those providers who deal intensively with the challenges of digitization and Industry 4.0 can really actively and purposefully support ERP users - also in the future.