How to Choose an ERP for Your Small to Medium Sized Business
Determine the Features and Functions Your Business Needs
Choosing the right ERP (Enterprise Resource Planning) system is crucial for meeting your specific business needs. Not all ERPs, order management systems, or inventory management systems offer the same functionalities. Even if they do, each system has its strengths, so it's important to select one that aligns with your primary business requirements. For example, if you run a manufacturing company, you'll want an ERP with robust manufacturing features. On the other hand, if your business involves importing a lot of products, strong shipment tracking capabilities will be essential.
Integration with Your Existing Software
Another key step in selecting the right ERP is ensuring it can integrate with the software your business already uses. Most ERPs come with prebuilt integrations for popular platforms like Shopify and accounting software like Xero. However, if you're using niche software, like a 3PL inventory system for your suppliers in China, it's vital to confirm with the ERP provider that they can support these integrations. This will help you avoid manual data entry and keep your information synchronized, leading to better decision-making.
Consider Costs and Associated Expenses
ERP systems can range widely in cost, from a few hundred dollars a year to millions for larger enterprise solutions. Before making a purchase, it's important to understand all associated costs. Beyond the annual or monthly fees, look out for maintenance costs, setup and installation fees, and charges for customization or additional integrations. Knowing what you're signing up for is crucial, especially if you’re a fast-growing SME, as costs can escalate quickly.
Prepare for Growth
You don't want to replace your ERP system every few months. Before buying, ask yourself if this system will support your business as it grows over the years. If you don't have a reliable ERP provider willing to assist with data migration to a new system, switching can become a real challenge.
ERP Provider Options
- Orderlink: Offers all the necessary features for fast-growing small to medium-sized businesses in New Zealand. Great onboarding and integration capabilities.
Price: Low - Odoo: A full business suite, ideal for medium-sized businesses that are growing quickly.
Price: High - Cin7: Perfect for small to medium-sized manufacturers.
Price: Medium - Unleashed: Strong in inventory management, but not ideal for manufacturing companies.
Price: Low - NetSuite: A versatile system suitable for nearly every industry and customer size.
Price: High
