Tips for Buying an ERP Solution

   1. Make a list of what you want or need from a system. This should be done early in the process. Consider the information you want to track and how you intend to gather it. Make a list of features that would make your company run better.

   2. Develop a list of potential suppliers. Weed out companies that don’t focus on what you do. As noted above, some companies specialize in hardwood lumber or softwood lumber. Avoid companies that do not have lumber-specific ERP solutions. Getting a general ERP solution to work with the complexities of sawmill and lumber operations is difficult. It is just easier to work with one of the solutions covered in this article.

   3. Evaluate your current process noting your limitations and any changes you would need to make to implement a new ERP solution. If most of your data is currently gathered from paper records written by hand, expect to spend more on automated data capturing than a company that already uses these devices.

   4. Consider your current technology and whether or not it will interface with the software supplier’s ERP program. Some companies sell both hand-held devices and software. While you may want a one-stop shop, some may want to work with multiple vendors. Depending on your tally devices and data capturing equipment, not all software will work with it. If you don’t mind upgrading all of that equipment, then ignore this point. Otherwise, you could get stuck with a problem.

   5. Discuss any interface or integration with the supplier upfront. Consider adding a clause in your contract that would mandate the supplier to be willing to integrate in the future if technology comes around that it does not support. Most companies should be willing to do this although they will want you to pick up the tab for customization.

   6. Find out what type of customization the supplier has done for clients. This will help you know how responsive the supplier is to making changes in a timely manner.

   7. Test drive any solution that you are really considering. Go beyond viewing a demo. Talk with current customers and ask for references. You should even ask for information on a company that had decided to switch to a competitor. This can be helpful to identify any potential problems with real world implementation. Be careful making too much out of a disgruntled customer though. Their experience may not be your experience if the situations are much different.

   8. Just in case you have buyer’s remorse, make sure that the information is easy to export to another system. The last thing you want is your data to be captive to a vendor that you don’t like.

   9. Specifically look at your current accounting system and find out if the solutions you like offer integration. Explore the costs and difficulty of importing your old data into any prospective system.

   10. Look for a solution that is flexible to change with technology. This includes changes to database technology and hardware. For example, as radio frequency identification (RFID) becomes a bigger deal in a few years, you may want to use the technology to track bundles around your yard or shipments round the globe.

   11. Pick a company that you feel comfortable with and ask for suppliers to validate claims. You will want a supplier that will be there in ten years. And there could be some consolidation in the coming years.

   12. Talk with support staff to understand the level and competency of support. If you have a difficulty communicating with a company in the sales process, imagine the issues that could result during the implementation stage.

   13. Ask other companies that you know in the industry what ERP solutions they use. Find out what else they looked at and what made them choose the vendor that they did.

   14. Data is only as good as your ability to understand it. Pay careful attention to the reports in the software. Does the program offer a dashboard? Does it integrate with standard reporting software, such as Crystal Reports? What standard reports does the system offer? Can individual users easily search for the information they need? Can users set up individual reports? How easy are the reports to read and customize to how you do business?