As a contractor, you’ve noticed a recurring acronym in your day-to-day tasks: ERP. In the last few years, the term “ERP Solution” has taken the service and construction market by storm and has likely lead to you asking “what is an ERP solution” and, more importantly, “why should I care”? In short, ERP stands for Enterprise Resource Planning and it describes any product that helps you handle all functions of your business, including accounting, maintenance, job costing, payroll and human resources.
As a construction company or specialty trade contractor, what aspects of an ERP Solution should be critical to your search? Typically, an ERP Solution consists of an integrated system that runs in real-time without relying on periodic updates that has a consistent look and feel throughout each module; a common database that supports all applications; and a simple installation process.
Most ERP Solutions are modular, which allows each system to be tailored to the functionality required from your company. The modular set-up also ensures that every person within your company has access to the objects in the system that they need, and nothing else. Since there are so many ERP Solutions currently circulating, it can often be difficult to find out which one is best for your operation. Some of the most common mistakes you can make for your company when selecting a solution are:
Incomplete Requirements
Since the implementation of a new ERP system requires people in your company to tweak the way that they do their jobs, it’s important to understand the requirements you have for current and future processes. Ensure that everyone on your team goes into sufficient detail to figure out the ideal practice and processes, and then use those as your requirements when looking for an ERP solution.
Reliance on Vendor Demos
When receiving a demo, ensure that the presenter doesn’t over-simplify the process. If possible, seek out existing product videos on the vendor’s website or on YouTube before the sales demo, so that you have an idea of what questions you want to ask. Don’t be afraid to ask complex questions to ensure that the ERP Solution you end up getting is the right fit for what you need.
Over-Emphasis on System Cost
While the cost of taking on a new system is far from irrelevant to any sized business, price should not be a dominant factor when deciding on the package. Other criteria, such as functionality; future proofing; and underlying infrastructure may be under stressed. The efficiencies that come from the proper ERP Solution carry long-term benefits that can’t always be measured by purchase price. You will see a quick return on investment with a solution that is truly a fit!