3 ERP vendor red flags to watch for

Organizations in the midst of adopting enterprise resource planning software often look for ways to accelerate the search and implementations processes. This compulsion makes perfect sense from a business perspective. ERP solutions offer transformative benefits once installed, lending budget-slashing accuracy to key operational activities such as job costing and scheduling. Why not look for shortcuts that move things forward, faster? 

Unfortunately, companies that favor speed over scrupulousness during the ERP adoption journey often run into major problems, especially those that rush through vendor selection. In many cases, prospective adopters simply assume that, because of the nature of the market, software providers offer comparable solutions and service plans. In reality, this is not the case. Simply installing any ERP will not result in bottom-line bolstering improvements. It is, in fact, possible to implement the wrong software with the wrong partner. This mistake can cost millions, finance expert Jessica Bosari explained in an article for Forbes.

Even large companies aren't immune to this common misstep. For instance, Hershey and Nike have both made the mistake of implementing ERP systems that simply didn't meld with the business and both suffered multimillion-dollar losses as a result.

This is an avoidable problem. Companies only have to take their time and carefully consider potential ERP vendors to dodge catastrophe. It all starts with learning how to spot software makers that will not work out of the gate. Luckily, most exhibit similarly bad behaviors that are easy to spot. As you peruse product demos and speak with sales and technical representatives, be sure to look for these vendor red flags:

Mixing fact with fiction
Organizations across virtually every industry use marketing to generate leads. There is absolutely no shame in promoting your products. However, some enterprises take things too far, offering materials that do not accurately reflect their capabilities. This is common in the software arena, where thousands of companies jockey for lucrative clients. Businesses on the other side of the equation must take this into account when searching for operational partners, including those looking to adopt ERP solutions. Sadly, many fail in this regard and get tricked into investing millions in products that only exist within the pages of meticulously crafted brochures, according to CIO.

The dupe usually begins during the demo stage and continues through the sales process. Once implementation begins, the cat usually claws its way out the bag and the cutting-edge new ERP you thought would transform your business turns out to be an information technology nightmare. To avoid this issue, it's best to request references. If a prospective vendor refuses, it's probably time to walk away. Should you get on the phone with a current customer, be sure to ask not only about system capabilities but also the maintenance and system service offerings. You're not simply purchasing something off the shelf – your organization is entering a long-term business relationship, one that only works if the vendor can offer proper support.

Manufacturers deploy ERP solutions differently then service companies - vendors should know this.Manufacturers deploy ERP solutions differently them service companies – vendors should know this.

Too much customization
There are few out-of-the-box ERP solutions that can effectively address every business solution. However, this doesn't mean adopters are asking software firms to build entirely custom solutions from the ground up. Savvy ERP searchers skew in the opposite direction, as modifications can become difficult and costly over time, Manufacturing Business Technology reported. This is not to mention the upfront expense of coding them in the first place. Luckily, most ERP vendors are on board with the less-is-more customization philosophy, TechTarget reported. These companies simply don't want to commit resources to creating patches and new features to keep customized software up to date.

With this in mind, stay away from vendors that want to weigh your software down with tailor-made components. Should your solution require some sort of modification, be sure to emphasize scalability. Overloading your servers with extensive system patches will slow down ERP-dependent processes and drain cash coffers.

Lack of industry-specific knowledge
While most ERP solutions execute common data-driven tasks, they are often employed in different ways. For example, a construction business might use any given system differently then an office-based enterprise that deals with services, not physical products. Reliable vendors recognize these sector-specific distinctions and offer resources to accommodate companies in varying sectors. This includes salespeople and technical personnel with the industry knowledge needed to effectively oversee the product design and implementation phases. 

Should you come across a software provider without experience in your space, it's best to walk away, according to ERP Focus. You want a partner that understands how you intend to use your system and can offer advice on how best to build and deploy it.

Navigating the ERP software implementation process is a challenge. As a result, your organization needs to search for an seasoned vendor with the experience, products and services needed to make your investment worthwhile. Firms that fail to deliver in these areas are best left alone.

Interested in working with a trusted ERP vendor? Connect with Accent Software, a Microsoft Business Solutions Partner. Our Dynamics NAV/ERP products ease essential backend processes such as inventory management, job costing and scheduling. Our seasoned implementation personnel can help you adopt a game-changing solution that fits your operational needs. Reach out today to learn more about our ERP offerings or schedule a demo.