Looking for a new ERP (enterprise resource planning) system for your manufacturing business? Most likely, you’ll enlist the help of a software partner to plan for, implement and customize your new system.
One of the most important parts of an ERP implementation is upfront planning. You can’t be thorough enough in outlining your needs and carefully quizzing potential software partners (also called a software reseller or software vendor) while reviewing ERP systems, also known as accounting and financial management systems.
You will likely research and interview several software partners. You will get more out of these interviews if you put some time into planning for them and compile certain information beforehand. In return, when you provide lots of good information up front, prospective software partners will be able to put together thorough proposals with accurate pricing.
What do software partners want you to do before and during the interview process?
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Describe your business processes in great detail
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Be very clear where automation is required
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Explain how different product lines change flow, work center steps and times
If you don’t have the time or resources to create a thorough process document, hire an independent consultant who will create one for you to share with prospective software partners. Here is a sample diagram of a manufacturing company’s material work flow. The workflow in the sample diagram starts in the sales department (i.e., the customer’s purchase order) then moves through engineering, material requirements, production, shipping and accounting.
Your goal should be to present your manufacturing business and its processes completely and clearly, and observe whether the ERP software partner “gets” your business. The software partner, after gaining an understanding of your business, should be able to articulate how you will benefit from the ERP system they are proposing, and why it’s needed.
As a software consultant who has been interviewed by manufacturers before ERP implementations, I can tell you it is extremely beneficial to receive the following information:
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A diagram of your business units
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A list of your manufacturing work centers
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An explanation of flow including raw materials, sub-components, labor, tools and machines needed
This helps both the software partner AND you. Obviously, these documents help the software vendor get a more in-depth understanding of the manufacturing company. These same documents help you think through processes and revisit whether the processes that might have been in place for years still make sense.
As you start interviewing software partners, consider how you will evaluate each one. Ask yourself the following questions about each software reseller:
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Does this software partner add value to my business and processes?
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Have the software partner’s consultants been around my industry a long time, and have they been exposed to numerous scenarios?
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Is this software reseller able to challenge us to think outside the box?
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Do the software reseller’s consultants communicate clearly with all levels of my manufacturing company’s employees?
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How many installations has the software partner performed in my industry, and can they provide references?
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