Three Questions to Ask Potential Distribution ERP Vendors

Jul 6, 2018 | Distribution Cloud ERP Software

As a distributor looking to upgrade your current distribution ERP system or getting your first one, there are certain things that you need to check with your potential vendor.

1. HOW WILL IT PAY FOR ITSELF?

As an investment, a distribution ERP must bring substantial return in order to be feasible. Apart from their own analysis about where the returns can come from, the vendors can provide information about new sources that can also provide substantial returns as well.  So it is very important that the businesses ask their vendors about ROI and utilize the vendor’s experience and knowledge to full advantage. This also works as a background check for vendors as it lets you know whether the vendor understands the business you are doing and has worked with some of your peers as well.

2. HOW TO USE DISTRIBUTION ERP FOR E-COMMERCE?

In recent times, eCommerce is vital for the distributors and it is expected that the vendors provide the right information that can lead you to more profitable markets. Many fulfillment centers already have eCommerce systems in place from different partners. Integration stands as an important part of the project. It is best if the vendor provides a distribution ERP that already uses web services to connect to other systems as in that case, the development is already complete and the process can be less costly and faster. The business must always ensure that they are in a position to provide eCommerce services whenever required.

As a distributor looking to upgrade your current ERP system or getting your first one, there are certain things that you need to check with your potential vendor. 1. HOW WILL IT PAY FOR ITSELF? As an investment, a distribution ERP must bring substantial return in order to be feasible. Apart from their own analysis about where the returns can come from, the vendors can provide information about new sources that can also provide substantial returns as well. So it is very important that the businesses ask their vendors about ROI and utilize the vendor’s experience and knowledge to full advantage. This also works as a background check for vendors as it lets you know whether the vendor understands the business you are doing and has worked with some of your peers as well. 2. HOW TO USE DISTRIBUTION ERP FOR E-COMMERCE? In recent times, eCommerce is vital for the distributors and it is expected that the vendors provide the right information that can lead you to more profitable markets. Many fulfillment centers already have eCommerce systems in place from different partners. Integration stands as an important part of the project. It is best if the vendor provides a distribution ERP that already uses web services to connect to other systems as in that case, the development is already complete and the process can be less costly and faster. The business must always ensure that they are in a position to provide eCommerce services whenever required. 3. HOW QUICKLY CAN YOUR SOFTWARE ADJUST TO CHANGE? Distribution business is characterized by constant change-it is very dynamic in nature. Thus apart from asking the vendor about how the ERP will work with your business as it is today, one also needs to know how it will change with the challenges of tomorrow. The business would like to have a simple adaptation mechanism where a simple addition or alteration of one or two module does all the work. If however, the ERP requires you to have costly customization for every change, then that ERP will not be cost effective at all. The questions placed above are common or generic questions for ERP vendors which act as examples for the businesses. Businesses can follow the pattern and frame questions that capture the problems and queries of their specific businesses better.

3. HOW QUICKLY CAN YOUR SOFTWARE ADJUST TO CHANGE?

Distribution business is characterized by constant change-it is very dynamic in nature. Thus apart from asking the vendor about how the ERP will work with your business as it is today, one also needs to know how it will change with the challenges of tomorrow. The business would like to have a simple adaptation mechanism where a simple addition or alteration of one or two module does all the work. If however, the ERP requires you to have costly customization for every change, then that ERP will not be cost effective at all.

The questions placed above are common or generic questions for ERP vendors which act as examples for the businesses. Businesses can follow the pattern and frame questions that capture the problems and queries of their specific businesses better.