Enterprise Resource Planning When it

Enterprise Resource Planning

When it comes to vendors and ERP systems, many companies just blindly do whatever the vendor suggests. These companies also often just choose the first ERP vendor they talk to, or one that was recommended to them by another company. That is not always a good business practice, because there are many ERP vendors available and some of them will be much better suited to a particular business than others will. If a company takes the time to find the right ERP vendor, that company can have a much better experience. However, if the company gets into the wrong partnership, it can spell disaster. ERP, or enterprise resource planning, is such an all-encompassing type of system that is it crucial to a business's success that the right vendor and the right software be used (Burns, n.d.).

Locating the right company and software for the job is something that all businesses must consider, no matter what size they are or what kinds of needs they have (Donovan, 2011). Overall, vendors often have too much of an influence on the ERP decisions that organizations make. That comes into play because some organizations are uncertain about what kinds of software they can get and what that software will do. Because they have trouble with that issue, they simply rely on the vendor to tell them what they need (Krigsman, 2011). That might seem to make sense, since the vendor knows the product. Unfortunately, the vendor really does not know the business. He or she can find out quite a bit about the business by working closely with company representatives, but that still is not going to provide all of the information that the company has.

Because vendors do not know all that there is to know about the companies to which they sell ERP systems, there is a very real danger that the vendor could get something wrong and that could cost the company in inefficiency and lost profits. That is worth considering, but too many companies do not know how to work properly with vendors. Companies that are planning on using ERP systems must focus on what they need before they go after a system that will provide that to them (Wailgum, 2010). In other words, the company should take the time to assess its needs and understand what would meet those needs, rather than allowing the vendor to determine what he or she feels the company's needs actual are and how the software that he or she is trying to sell can best meet those needs.

Companies must remember that vendors, while largely ethical and helpful, are in the business of selling ERP systems to companies. If a company is unsure what it needs, the vendor can end up with a much larger role in the determination of the ERP system than he or she should have (Donovan, 2011). That can be avoided, but only by businesses that know what they need. For companies that are not sure about what all ERP systems can really do, determining exactly what is needed is highly difficult. Working with more than one vendor can be a good choice for these companies, so that they can best decide what will work for them and what may be faulty or simply unnecessary (Burns, n.d.). There are many companies with ERP systems that are not used to their fullest potential, and still more companies that have parts of the ERP systems that they simply do not need or use.

It is not impossible for a company to end up with ERP systems that they do not need simply because they thought they wanted something and then changed their mind. Conversely, it is also likely that companies will end up with ERP systems that they do not need because they were talked into them by overzealous vendors. The most important thing that vendors know about the implementation of ERP systems is what those systems are capable of doing. The most important thing that the vendors do not know is what the company actually needs and exactly how it will use that system. The best vendors are the ones that take the time to learn what the company really needs and how it will use the ERP system (Krigsman, 2011). By taking the time to do that, and then selling the company an ERP system that will actually work for the company, the vendor and the company both have a higher chance of meeting one another's needs and having a successful partnership.

There is nothing wrong with a company listening to what a vendor has to say and considering what is suggested. In some cases, the vendor can provide surprising insight that the company can take to heart and use (Wailgum, 2010). However, in other cases there may be too much of an emphasis by the vendor on selling a system to the company and not enough emphasis on meeting the needs of that company. Companies that consider that possibility and take more time to research their options are going to be more likely in the long run to get what they need from their ERP vendor. Since ERP systems can be very costly, it is important to get what is needed the first time (Burns, n.d.). Companies who take their time and make the best choice for their needs - along with room to grow - are often the happiest with their ERP system and the vendor that sold them that system.