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ERP Vendor

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Regional vs. International Which ERP Vendor
is Right for your
Company?

Are you planning an ERP project? Then the first step is to select the appropriate ERP vendor. Whether a regional or an international 🌎 vendor is better suited to your company depends on factors such as the size of your company and your internationalization strategy. Both options have clear advantages and disadvantages.

Making a Pre-selection from Suitable ERP Vendors

The choice of the right ERP vendor is anything but easy. It is helpful to first consider whether a regional or an international vendor is more suitable for you. This will give you a pre-selection, on the basis of which you can then refine your selection.

Regional ERP Vendor: Strengths and Weaknesses

A regional ERP vendor operates in a specific geographical region (e.g. within a federal state or country). They usually focus on small to medium-sized enterprises (SMEs) and are often organized as SMEs themselves. What are their advantages compared to an international vendor?

Strengths

  • Proximity and accessibility: If the vendor is located in the immediate vicinity, on-site appointments can take place if necessary (at short notice). (Speaking of on-site appointments: in our experience over the last few years, remote ERP projects work at least as well. 😊)
  • Better understanding of regional/local requirements: A regional ERP vendor is very familiar with local legislation and local market conditions. They can advise you better in this respect than a broad-based vendor that serves customers in various countries.
  • Personal contact: When working with a regional vendor, you are often on a first-name basis with your contact person, which makes communication more personal, less complicated and therefore more pleasant in many cases.
  • Specialized portfolio: Instead of getting bogged down, the vendor usually invests its entire expertise in selected solutions. They know their potential and limitations in detail and can adapt them optimally to the needs of your company.
  • Customer-oriented service: The vendor can often respond more flexibly and quickly to inquiries and problems. You can also expect more personalized support from them.
  • Understanding of the SME mindset: The ERP vendor knows the typical requirements, budget framework and decision-making processes of SMEs, as they are often organized as SMEs themselves. This means you can communicate with them “at eye level”.
  • Cultural proximity: They speak the same language as you, which allows you to communicate with each other without any hurdles or misunderstandings. In addition, there are no problems due to different time zones.

Weaknesses

Limited international experience: The regional ERP vendor probably has little experience with international roll-outs (this aspect could be relevant if you are planning such a roll-out).

International ERP Vendor: Strengths and Weaknesses

An international ERP vendor is not limited to a specific country or region, but implements projects in several countries and also in different time zones. They usually serve large companies or groups that operate internationally and have complex structures. What are their strengths and weaknesses compared to a regional vendor?

Strengths

  • Global project experience: The international ERP vendor scores with an extensive expertise in international roll-outs. They are very familiar with multinational projects and compliance issues.
  • Broad service portfolio: The vendor usually offers comprehensive services, integrations and innovation (e.g. AI, IoT).

Weaknesses

  • Less flexibility: An international ERP vendor often relies on a standardized project approach, which leaves less room for individuality. In addition, decision-making processes are often longer.
  • Higher costs: Project costs and hourly rates are often significantly higher than with a regional vendor.
  • Less personal support: If you work with a global ERP vendor, your contact person may change repeatedly. Overall, the collaboration is less personal than with a regional vendor.

Which Vendor suits you Better? - A Little Decision-making Aid

Criterion Regional ERP Vendor International ERP Vendor
Proximity to Customers ✅ High ❌ Low
Local Legislation ✅ Familiar ❌ Less Specialized
Cost ✅ Tends to be Cheaper ❌ Higher
Flexibility ✅ Tends to be Higher ❌ Lower
Support ✅ Personal ❌ Often Standardized
International Experience ❌ Limited ✅ High
Portfolio ✅ Specialized ✅ Broad

Conclusion: Regional or International ERP Vendor?

International, fast-growing companies often need support from a globally experienced partner who is familiar with roll-outs across several countries and is able to manage them professionally.

Small and medium-sized companies, on the other hand, are in most cases better off with regional ERP vendors. Collaboration is usually more personal, faster and often more cost-efficient, with additional advantages such as flexibility and an understanding of cultural circumstances and the challenges faced by SMEs.

Road Sign Global Local
Regional or international ERP vendor - which direction are you taking?

If you are looking for such an ERP vendor in the Muensterland/NRW region, please contact us. Our core competence is not only in consulting and supporting medium-sized companies that are interested in the ERP solution Dynamics 365 Business Central, but we also support you in the areas of Business Intelligence and Change Management. We look forward to hearing from you! 😊