Action Steps
The best contacts and resources to help you get it done

Look at business ERP software

Explore the different types of ERP software applications available. Define your business in terms of size, number of employees, annual sales and locations to determine the correct ERP software product offerings.

I recommend: Schedule meetings with the ERP software vendors who offer the right sized solution for your firm. Provide them with a list of your requirements, timeline and budget. Enterprise resource planning ERP software is for medium to large companies. Review the product offerings from Compiere or Sage Accpac to form an understanding of scope and pricing.

Implement an ERP software application

Select an enterprise resource planning software package that meets your current and future needs. Document your current business practices in all aspects of your business. Develop a project team, with representation from every area of the business.

I recommend: Hire consultants to assist with the implementation process. Form an oversight committee to make executive decisions about the software. All ERP solutions must be customized to meet a business specific needs. Experienced consultant provide in depth knowledge of the software and ask as a valuable resource to keep the project on track. Contact Genesis 10 or Agresso for more information on pre and post implementation support.

Review project plan to implement an ERP program

Take this opportunity to implement best practices into your firm. ERP programs are designed around these core strategies that have proved effective across multiple firms and industries. Changing your business practice to meet these common practices is part of the benefit behind the implementation of business ERP software.

I recommend: Read books and articles on best practices to clearly identify what needs to be changed. Review your current business practices, planned processes and document the difference or gap between the two. Meet with staff and share resources to improve their understanding of the changes. ERP Wire and ERP Fans both provide reference material on ERP solutions.

Helpful advice for making the most of this Guide

• •  Business ERP software has changed the operation of many business, making them more efficient, with a lower cost of ownership and the information required to make the best decisions possible. It is not an easy process, but well worth it.

Guide to ERP Software

Let ERP software pave your way to a dynamically integrated enterprise

By Marianne Cotter, Freelance writer

Action Steps
The best contacts and resources to help you get it done

Determine which ERP applications to buy

ERP solutions are generally sold in a suite of modules that can be installed separately. The core ERP software application is accounting; all other modules integrate into the accounting program. A complete ERP software suite should connect every business unit in the company.

I recommend: Netsuite is an online ERP software solution organized around three business units — e-commerce, CRM and accounting — each of which has numerous modules. Solutions360’s q360 enterprise resource planning software suite combines financial management, inventory, asset lifecycle management, project management, document management, service dispatch and sales and marketing.

Hosted ERP solutions

One of the most important decisions you'll make is whether to buy ERP software that runs on your own servers or a hosted solution that resides on the server of the vendor who is responsible for hardware and maintenance. With hosted ERP solutions, you typically pay a monthly fee based on the number of users.

I recommend: Most ERP software solution providers, including Intacct and Epicor, offer both hosted and non-hosted versions.

Choose an ERP software system that is properly scaled to your business size

While most ERP systems are designed for large, even multinational, corporations, several vendors offer solutions targeted to the small, growing business.

I recommend: Netsuite Small Business is one of many ERP solutions that connects all the data across your company. If your company uses QuickBooks, consider using QuickBooks Enterprise Solutions. Intacct Small Business is a suite of applications designed for companies that are migrating from QuickBooks. Included ERP applications are financial management, project management, supply chain management and business intelligence. The solutions in the Microsoft Dynamics line combine to automate financial, customer relationship and supply chain. Sage offers three ERP solutions — Sage MAS 90, Sage MAS 200 and Sage MAS 500 — to meet your company’s needs. Even big ERP software players like SAP and Oracle offer small- and mid-sized business solutions.

Find ERP solutions tailored to your industry

ERP software systems that are designed for your industry can save time and money you might otherwise spend customizing general ERP solutions to reflect industry processes.

I recommend: Many ERP software systems such as WinMagi and Plex are designed specifically for small- to mid-sized manufacturing companies. QuickBooks Enterprise Industry Solutions provides special editions for contractors, manufacturing/wholesale, nonprofit organizations, professional services and retail. Epicor Solutions by Industry offers ERP solutions for distribution, financial services, hospitality/entertainment, industrial machinery, light engineering, manufacturing, nonprofit, pharmaceutical, professional services and retail.

Helpful advice for making the most of this Guide

• •  Determine whether the size and complexity of your organization justifies a full-scale ERP software implementation or if best-of-breed point ERP applications might be enough get the job done.
• •  Make sure the ERP software solution you choose is scalable for future growth.
• •  Considering hiring the services of an ERP software consultant to lead the selection and implementation process.
• •  Look for an enterprise resource planning software provider that has experience in your industry.
• •  With web based ERP solutions, you don't need an in-house tech department to handle software installation or updates.

Action Steps
The best contacts and resources to help you get it done

Use ERP software applications for manufacturing

ERP software applications for manufacturers include many features such as storefronts for business-to-business or business-to-consumer websites, specialized IBM system operations, applications for project-based and process manufacturers and distribution management solutions.

I recommend: ERP software vendors such as Infor can explain how manufacturing ERP solutions will work for you. Review articles, such as the ones put out by Specialty Publishing, that tell how manufacturers should use ERP programs for maximum efficiency and automation. Automotive Design and Production explains how automotive production is improving with ERP software.

Streamline business processes with an ERP program

Managing administrative processes cost-effectively in the way ERP software allows, helps your company reduce costs, decrease monetary risks, consolidate resource information and enhance customer service.

I recommend: Visit SAP to determine how corporate ERP services help streamline the management of real estate, assets, portfolios, travel, safety compliance, quality and global trade services. Get important tips about how to use ERP software successfully to streamline financial operations from Business Software. Tips include training users well in advance of software installation to prevent slowing down productivity and customizing software to fit your company's specific requirements.

Use ERP application software for warehouse management

Tracking inventory is just a small part of warehouse management ERP solutions. Visit vendors to get the big picture of how to use ERP effectively for your warehouse.

I recommend: View online demos for warehouse management ERP solutions, like the one offered by Compiere, to ensure fully-functional integration of inbound and outbound operations. Compiere Warehouse Management software is also easily customized. Vormittag Associates gives detailed instructions on how to use S2K Enterprise for Warehouse Management for product movement, order management and verification, pallet creation, warehouse transfers and more. Use wireless warehouse management from IQMS to reduce the amount of time employees spend at workstations and increase data input accuracy.

Helpful advice for making the most of this Guide

• •  Take advantage of free demos of business ERP software, but don't stop there. Request free 60-day or 90-day trials before purchasing to ensure you have the right system and know how to use it for maximum benefits.

Action Steps
The best contacts and resources to help you get it done

Activity-based costing (ABC)

Activity-based costing is one approach to evaluate specific costs of production to determine the true estimate of cost with a number of value-added activities.

I recommend: You can find an introduction to the ABC method at Value Based Management.

Implementation

Implementation is the process of integrating ERP software into a business. Implementation happens over time and uses ERP experts to see where the business can be streamlined for more efficient use of the software.

I recommend: ERP Consultant provides the steps that should be taken for implementation of ERP in a business.

Dirty data

Dirty data is a series of data that can be entered into an ERP program, but is not in a format the program recognizes. Assumptions can be used to clean the data so it's usable with ERP software.

I recommend: Computer World provides news and information on how dirty data can hinder many types of supply chain software, including ERP software.

Just-in-time (JIT)

A just-in-time process is a process of either production or logistics that provides a supply delivery just when it is needed and not before. This helps to reduce large inventories.

I recommend: Seradex provides information on how an ERP module for JIT processing can help to set up automatic control and purchasing.

Model-based management

Model-based management is a way to make decisions based on a the performance of a dynamic model instead of evaluation of actual supply chain performance.

I recommend: Strategy+Business provides information on the Performance System, a model-based management system that works to link operations with financial performance.

Business process re-engineering (BPR)

Business process re-engineering is the process a business will undertake in order to get ready for the implementation of ERP software. This process looks for areas where the business needs to make changes to become compatible with ERP processes.

I recommend: ERP Wire provides an overview of the BPR process and the steps needed to reach success.