Picking an ERP system is the easy part.
The difficult aspect? Finding someone who will actually deliver. Many companies spend months researching software capabilities when the real deciding factor is who they partner with to implement that software. A fantastic ERP with a terrible partner will fall short. A good ERP with a great partner can become magical.
Here’s the thing…
Software is only a tool. It’s the partner that makes that tool produce.
Inside this guide:
- Why ERP Partners Matter More Than the Software
- The Real Cost Of Choosing The Wrong Partner
- What Makes A Great ERP Partner
- How To Pick The Right ERP Partner For Your Business
Why ERP Partners Matter More Than the Software
Every ERP vendor thinks their ERP software is superior. And truthfully? Most of the large vendors are great.
NetSuite, SAP, Microsoft Dynamics, Oracle all boast strong functionality and decades of refining. But here’s what they don’t tell you…
The software isn’t what fails.
Implementation is. If your ERP projects have a 55-75% failure rate of meeting defined goals, it’s likely not because you purchased inferior software. Chances are it’s because your implementation was rolled out too quickly, was poorly defined, or was implemented by people who didn’t understand your business.
And that’s exactly where a great ERP partner steps in.
Top-tier Netsuite partners Singapore understand that good implementation consultants do more than drop a cloud ERP software into your business. They dig into how you work, map those processes and walk your employees through every step of the transition. It’s quite different from working with a software vendor that only cares about pushing licenses at you.
Let’s compare building wealth to building a house. You can have the finest materials available… But if your contractor cheats on you, uses improper measurements, or doesn’t listen to what you want – that house is never going to stand.
Same deal with cloud ERP.
The Real Cost Of Choosing The Wrong PartnerThe Real Cost Of Choosing The Wrong Partner
Choosing the wrong ERP partner is expensive. Really expensive.
Companies that select a partner solely on price (or even worse brand name) can end up spending double or triple that amount. Here’s why: Poor implementation =
- Budget overruns
- Blown timelines
- Poor user adoption
- Ongoing bugs and issues
- Missed business objectives
Here are some statistics to prove it. Panorama Consulting recently published a report stating that 73% of manufacturing ERP projects fail, with average cost overruns of 215%.
Let that sink in for a second.
What that translates to is for every dollar you budget for your ERP project you are spending upwards of three dollars to complete it. And more often than not, the completed project still doesn’t function the way it was intended to. The frightening thing? The majority of those failures stem from one issue…
The implementation partner.
A good partner would have:
- Scoped the project properly from day one
- Identified risks before they became problems
- Trained the team so adoption was smooth
- Kept everyone accountable to the timeline
Skip on partner quality, and every one of those items becomes a costly headache.
What Makes A Great ERP PartnerWhat Makes A Great ERP Partner
Ok, but what SHOULD businesses look for in an ERP partner? Here are a few Essentials…
Industry Experience
Generic ERP experience won’t cut it. Top tier partners understand the business’ specific industry inside and out.
Why is this important? Industries have oddities. A partner who has performed 50 implementations in manufacturing will know:
- Bill of materials complexity
- Job costing needs
- Regulatory compliance
- Supply chain nuances
Retail. Professional services. Distribution. Doesn’t matter what vertical you’re in. Question prospective partners on how many customers they’ve worked with that are specifically in your industry. If they can’t give you a high number, move on.
Local Presence
Cloud ERP may reside in the cloud but you still have to roll up your sleeves for implementation.
Local partners know their local business ecosystem. Taxation policies, regulatory nuances, culture — things a distant implementer wouldn’t know or understand. It’s crucial for Singapore and Southeast Asia firms that are adopting cloud rapidly and migrating to cloud ERP in droves.
Businesses that pick local partners get:
- Faster response times
- Better cultural fit
- Deeper knowledge of local compliance
- Long-term support relationships
Ongoing Support
The ERP implementation isn’t a one-and-done event. It’s the start of a long relationship.
Good partners stay. They train you as you add team members, assist with system upgrades and tweak the system as your business evolves. Poor partners hand over the keys and vanish.
Ask about post go-live support before you sign on the dotted line. What’s their response time? What’s included? What will cost extra? Their answers will tell you a lot about how they view the partnership.
Certified Expertise
Not all partners are created equal.
Top tier cloud ERP vendors have tiered partners based on certifications, experience, and client results. NetSuite has an Alliance Partner program. SAP has Gold Partners. Microsoft has Inner Circle status. These aren’t meaningless certifications. They stand for real training. Real clients won. Real accountability.
Make sure to always inquire what tier your partner is sitting in as well as how many certified consultants they have.
How To Pick The Right ERP Partner For Your Business
Ready to start narrowing down the list? Here’s a simple approach that works…
Step 1: Ask other businesses within your industry for referrals. Word of mouth from actual clients will trump sales brochures any day.
Step 2: Request case studies. An ideal partner should be willing to share detailed examples of previous implementations — warts and all.
Step 3: Interview the real team. No offense sales rep, but meet the consultants who would actually run the show.
Step 4: Evaluate their process. Effective partners have an established process — not an “it’ll work out” mentality.
Step 5: Trust your gut. Chemistry is important. You’re in this for the long haul so you want it to feel right.
Businesses that take these steps invariably find themselves with a vendor they can trust. And trust is everything when the going gets tough (and it always does at some point in ERP implementation).
Final Thoughts
The ERP software gets all the attention. The partner deserves it more.
A good partner can make mediocre software into a competitive business advantage. A poor partner can sink even the best software faster than you can blink. Your choice really is that critical.
Take time to vet your ERP partner before signing on the dotted line. Consider:
- Industry experience
- Local presence
- Ongoing support
- Certified expertise
Get four things right and your implementation has a fighting chance for success. Get them wrong and you’re in for a long, costly journey to nowhere.
The software matters. The partner matters more.