MANY small to medium-sized and, to an extent, large logistics and freight forwarding companies still use systems that are outdated or fall short of their business requirements. Why many companies hesitate to go for a new ERP solution is easy to understand. Some consider moving to a new system a risky, painful and disruptive process; others find the cost prohibitive and still others might not have realized the virtual quicksand they are standing on.
Whatever the reason, remaining complacent and not exploring the option of moving to the most relevant ERP solution can cause more harm to the organization than good.
But if you do conclude your organization will be best served by leveraging a next-generation ERP solution, the most obvious question you should ask is – which solution? An astute selection process based on the merits of the solution will only help in a successful implementation.
Logistics and freight forwarding companies would do best to consider a solution provider that understands the specific challenges of the market. Many freight management or logistics solutions are available but fall short of various parameters crucial to running your business and growing it.
It is definitely not a wise move to implement an ERP first then retrofit it to your organization later. It’s far more sensible to first get into the nitty gritty and confirm that the ERP solution fulfills your organizational needs end-to-end as well as gives you the tools to enhance your business.
Determining the cost of ownership of course is the next consideration. When you receive a quote, it usually includes per user license costs, software, support for a year, implementation, training, maintenance and upgrade costs etc. which gives you a fair idea of the total cost of ownership.
While scrutinizing the vendors it helps to check if they have been serving your industry well. Niche vendors usually provide a well-designed solution that meets your industry’s unique needs. Select the vendor that will streamline your industry-specific processes while increasing profitability through reduced costs. It is important to identify the vendor whose solution will meet your needs and provide a positive working relationship.
Evaluating ERP solutions using a strategic approach will help you select the best fit for your organization and avoid pitfalls that may cause serious setbacks. Transition to a new ERP solution is not an easy process but with the right solution the outcome will far outweigh drawbacks and ensure success in the long run.
