How to Minimize ERP Implementation Costs  

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Minimize ERP Implementation Costs  

 

Whether this is your first ERP implementation or your third, you are probably aware that the ERP implementation process can be arduous. An ERP implementation includes installing your software, transferring your financial and transactional data, mapping your business processes, and training your end-users.  

When implemented successfully, ERP solutions result in higher efficiency, lower operating costs, improve your organization’s reporting and financial visibility, and eliminate silos between departments. If your organization falls under the distribution and manufacturing industry, an ERP solution will help you optimize your supply chain and provide a competitive edge. Simply put, an ERP solution can be thought of as the backbone of your organization as it manages and integrates all your critical business processes.  

However, ERP implementations can also be expensive. Costs can add up, and some ERP projects go over budget or over-schedule. While you should think about an ERP implementation as an investment, there are certain ways to minimize or reduce your ERP implementation costs and keep your project from going over budget. We’ve rounded up seven strategies that can help you cut down your ERP implementation costs.  

1. Plan and Budget Carefully  

 ERP projects often rack up costs or go beyond the original scope without a thorough plan and budget. Many times, companies miss some essential components of ERP implementation while building the project roadmap. Here are some questions you should be asking and thinking about: 

  • What is the total cost of the software? Are there any hidden costs? 
  • What is your change management strategy? 
  • What will be your approach for data transfer? Will there be any hardware and network costs?  
  • Who will work on the project, and how will their regular job tasks be covered? 

If these questions are not answered at the beginning of the project, you will likely encounter disorganization and increased costs down the line. If your actual costs go over your budget frequently, find areas where you can bring it in line with what you have to spend on the project or consider alternatives. Careful planning and budgeting are crucial to controlling implementation costs. 

Discover six other tips and strategies to reduce your ERP costs - Read the full article here.  

 

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