Starting an ERP implementation is a big decision for any business. It’s not just about picking the right software, but also about choosing the right people to help you bring it to life. A study found that 75% of ERP systems fail to meet their goals due to poor planning or execution. This means choosing between an ERP vendor and an ERP partner is just as important as picking the software itself. But what’s the difference, and how do you decide? Let’s break it down.
What Is an ERP Vendor?
An ERP vendor is the company that builds and maintains the ERP software. Companies like SAP, Microsoft Dynamics, and Oracle are ERP vendors. Their job is to provide the software and ensure it works with regular updates and fixes.
If you’re wondering what an ERP vendor’s strength is, it’s their in-depth knowledge of the software they created. They focus on delivering standard features that fit most businesses. However, ERP vendors might not always provide the customizations your business needs. Working with them often means adjusting your processes to fit the system, which may work for simple workflows but might not suit complex or unique business needs.
Why Work With an ERP Vendor?
- You need standard ERP functions without much adjustment.
- Your in-house team can handle any technical tweaks needed later.
- You’re looking for a cost-effective option upfront.
ERP vendors are a solid choice if your processes are straightforward, but you might need more tailored help for anything beyond the basics.
What Is an ERP Partner?
An ERP partner is a company that works with you and the ERP vendor to customize and implement the software. ERP partners don’t make the software—they help make it work specifically for your business. You can think of them as guides for your ERP implementation process.
For businesses with complex workflows or specific industry needs, ERP partners are often better suited to the job. They’ll help you adjust the system, integrate third-party tools, and train your ERP team. ERP partners don’t just stop after the software goes live. They’ll continue to provide support, help you scale, and make sure your ERP system evolves with your business.
Advantages of Choosing an ERP Partner
Custom Fit for Your Business
A successful ERP implementation isn’t just about software; it’s about how well it fits your processes. ERP partners ensure the system is tailored to your business instead of forcing you to adapt to the software.
Long-Term Support
ERP partners are there every step of the way—from planning and execution to post-launch improvements. This makes the ERP implementation process a lot smoother.
Specialized Expertise
Some ERP partners specialize in specific industries, like manufacturing or healthcare. This means they have in-depth knowledge about your challenges and can help create solutions that work best for you.
Smooth Integrations
ERP systems often need to work alongside other tools. ERP partners handle these integrations, making sure everything runs seamlessly together.
Vendor vs Partner: Which Is Right for You?
Now that you know the difference, how do you decide between a vendor vs partner? Here are some considerations:
1. Do You Need Customization?
An ERP partner is the better choice if you need a system tailored to your unique workflows. ERP vendors, on the other hand, offer more standardized options, which might work if your processes are already simple and don’t require much adjustment.
2. What Type of Support Do You Need?
If you prefer long-term guidance and hands-on help, an ERP partner is the way to go. They’ll stick with you well beyond the initial setup. If you’re comfortable managing updates and troubleshooting yourself, working with an ERP vendor might be enough.
3. What’s Your Industry?
For businesses in specialized fields like retail, food distribution, or healthcare, ERP partners with relevant expertise can provide insights and tools specific to your industry. ERP vendors won’t often offer this level of targeted knowledge.
4. What’s Your Budget?
ERP vendors might seem cheaper upfront, but hidden costs like extra developments or troubleshooting can add up. ERP partners may cost more at first, but their ability to efficiently customize and integrate systems can save you money in the long run.
5. Are You Planning to Scale?
If you’re aiming for business growth, ensure your ERP system can grow with you. ERP partners specialize in scaling and adapting ERP systems to fit expanding needs. Vendors often stick to core updates, which may require outside help to expand further.
Vendor or Partner? Find the Right Fit for Your ERP Journey
Deciding between an ERP vendor and an ERP partner depends on what works best for your business. If you’re okay with standard software and can manage updates yourself, a vendor might be the easier, budget-friendly choice. But if you need a system tailored to your unique processes, along with long-term support, an ERP partner is the better option.
Ask yourself these key questions:
- Do I need a basic system or a customized one?
- Can my team handle updates and fixes on their own?
- Do I want a quick setup or a long-term collaborator?
Both vendors and partners have their strengths, but the right decision is the one that matches your goals and plans for growth. Take the time to evaluate your needs, and choose a partner or vendor who can help you implement an ERP system that’s not just functional but truly beneficial for your business. With the right approach, your ERP solution can help you solve today’s challenges and prepare for tomorrow’s opportunities.