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When Cheap becomes Expensive Typical Mistakes ❌ when
selecting an ERP Vendor
that have Consequences

A good ERP vendor advises and supports you as a long-term partner before, during and after the implementation of your ERP solution. Although the selection of an ERP vendor is a very important decision, many companies make mistakes. 😟 If you consider typical mistakes made by other companies before choosing your vendor, you have the chance to avoid them.

Typical Mistakes ❌ when selecting an ERP Vendor that happen Every Day in Practice

Everything revolves around the Price

It’s more common than you might think for companies to consider price as the most important criterion when it comes to choosing their ERP vendor. Of course, it’s tempting to go for the cheapest option, isn’t it? Especially when you only have a limited budget available. But unfortunately, a particularly low price rarely stands for excellent support, very good service and high quality implementation.

In the end, a “cheap” solution may even turn out to be more expensive. Make sure that the vendor offers you a reasonable price and also has sufficient experience and expertise in the implementation of the ERP system. A good vendor will clearly communicate the value of their service. And it’s not about simply taking the quickest and cheapest route.

It’s all about the Software

Some companies focus too much on the software when selecting an ERP vendor, ignoring the fact that the vendor should be a reliable partner for your company. If you only look at the product and not the vendor behind it, you risk slow support, inadequate further development or communication problems.

A good ERP vendor understands your business model, thinks along with you, speaks “your language” and is able to react flexibly to both technical and operational challenges. See your ERP vendor more as a long-term partner, who will be at your side throughout the entire life cycle of the system and make sure you include this point in your decision.

Misunderstandings about Misunderstandings

A common mistake is that companies do not clearly define their requirements and do not communicate them to the vendor. If your requirements and wishes are unclear, this often leads to misunderstandings. The result: the project is delayed. Or even worse: the ERP system doesn’t suit your company at all.

Define what your company really needs early on and as precisely as possible. Create a requirements specification or a detailed requirements list, in which all relevant processes, interfaces, user requirements and special features are described. Actively involve the specialist departments in this. They know best which functions are really needed on a day-to-day basis. Communicate these requirements openly and in a structured manner to potential vendors. This will ensure that everyone involved has the same understanding of the project goal.

A One-off Project?

An ERP system is not a “set-and-forget” project. It evolves with your company. And with every update, process change or legal amendment, new requirements arise.

Despite this, ongoing support is often neglected when selecting a vendor. Many companies concentrate on the implementation itself without sufficiently questioning what support will look like after the go-live. You should clarify these questions:

  • Who can be contacted in the event of a fault?
  • What support does the vendor offer for updates or legal changes?
  • Will the know-how for the solution still be available in 3, 5 or 10 years’ time?

Scalability is not considered

Many companies choose an ERP system that is just sufficient for their current company size, quickly forgetting that they could be somewhere completely different in a few years’ time. As a result, the system reaches its limits as soon as new requirements are added. These can look like this, for example:

  • More users or more locations are added
  • New business models (e.g. online sales, international expansion) are integrated
  • The requirements for reporting, automation or interfaces increase

A competent ERP vendor will advise you with foresight and recommend a solution that is efficient at the present time but also future-proof. You should therefore look for a vendor that offers you a scalable system such as Microsoft Dynamics 365 Business Central. Such a system grows with your company.

The Right ERP Vendor with Foresight

The choice of your ERP vendor should never be made hastily or solely on the basis of cost. A clear catalog of requirements, a focus on long-term partnership and the flexibility of the system are decisive criteria for a successful ERP project. Avoiding typical mistakes from the outset can save a lot of time and money in the long term.

Mistakes can be Costly
Mistakes in the selection of your ERP vendor can be quite expensive.