Enterprise resource planning (ERP) has significantly evolved from its beginnings as material resource planning systems for manufacturers. Today, organizations across various industries depend on ERP software to manage their operations. ERP systems enhance efficiency and cross-departmental coordination by integrating core business functions, reducing redundancies and manual tasks, and offering a single source of data to ensure consistency across the entire business.

Whether your organization is upgrading an existing system or selecting ERP software for the first time, below are a few key tips to keep in mind that will streamline the selection process and increase the likelihood of a successful implementation.

What to consider when choosing an ERP solution

ERP solutions are all-in-one business tools designed to help companies efficiently manage their core activities as it gathers real-time information from various departments including finance, human resources, supply chain, and manufacturing.

By consolidating this data on a single platform, ERP systems make it easier to manage and share information across different departments within a company. Providers, like NetSuite, offer comprehensive suites of features and benefits, making them top choices for businesses looking for an all-in-one ERP solution.

Here are a few key considerations as you embark on your ERP journey:

1. What issues are you trying to solve?

   The evaluation process starts by identifying the problems your business aims to address. Engage with a broad range of individuals within your organization, from senior management to frontline employees and staff. Determine everyone’s pain points and identify inefficiencies that could be resolved with an ERP system.
   
   Issues such as manual data entry, disconnected systems, or a lack of visibility into critical business information (like financial, sales, and inventory data) are common problems that an ERP can solve. Clearly and systematically outlining these challenges in a business case helps a company better understand its specific needs, enabling a more informed evaluation of ERP systems.

2. What modules will you need?

   After identifying issues and outlining requirements, determine which ERP modules will address those needs. ERP systems typically include a variety of modules, such as finance, sales, inventory management, warehouse and logistics management, HR, and customer relationship management (CRM).
   
   Almost all businesses should consider implementing a financial management model, as finances are the backbone of any organization. NetSuite’s financial management module, for instance, offers a complete set of tools for handling financial processes, including general ledger, accounts payable and receivable, budgeting, and financial reporting. It provides real-time visibility into financial data, allowing businesses to streamline their financial operations effectively.
   
   Additional modules will depend on the company’s specific processes and requirements. For instance, an e-commerce company facing order-fulfillment bottlenecks might benefit from order management and logistics modules, as well as a CRM system, to manage customer interactions effectively.
   
   Depending on the vendor and the specific ERP system, modules can often be added over time as business needs evolve. Many ERP solutions can be scaled and configured, to meet the unique requirements of each organization. Identifying which modules are necessary now, as well as those that might be needed in the future, helps businesses focus on evaluating vendors that offer the desired functionality.

3. Understanding the benefits of a cloud-based solution

   Cost-effectiveness is typically a fundamental concern for many companies. The pay-as-you-go model of cloud ERP systems can have substantial benefits. Scalability is another vital feature of cloud-based ERP systems that allow them to grow with the business without incurring prohibitive unforeseen fees or logistical issues. On top of this, cloud ERPs offer unparalleled accessibility, facilitating easy integrations into today’s increasingly mobile work environments.
   
   The benefits of vendor-managed maintenance and upgrades can significantly reduce the IT burden on a company’s internal teams. Additionally, disaster recovery capabilities that are built natively into cloud ERP systems provide peace of mind in a day and age where data is one of the most valuable assets. Given all of the above, it is apparent that cloud-based systems’ benefits outweigh those of other options.

Citrin Cooperman can help your business make the right ERP choice

Choosing the best ERP solution to meet your organization’s unique requirements is a crucial decision that can significantly impact the efficiency and success of your business operations. By carefully evaluating your specific needs, understanding the various ERP modules and deployment options, and considering the long-term scalability and support offered by different vendors, you can select a solution that will not only address your current challenges but also support your future growth.

If you need guidance in navigating the complex ERP landscape, Citrin Cooperman’s Digital Services Practice is here to help. Learn more about how we can assist you in selecting and implementing the ideal ERP solution for your business.