We have extensive experience in controlling the cost and terms for buying ERP software. This results in very large improvements in cost and terms over what is otherwise typically arranged when buyers are unaware of their options. Before interaction with candidate software venders we educate your team on what can be achieved and what tactics or arguments you may hear from candidate software venders. We want the selection team and executive sponsors resilient and confident on this topic. Key cost control objectives are to:

Control actual costs:  Arrange costs for ERP that are far below actual costs typically paid. What is actually paid is usually more than expected over time as most ERP venders define ‘user types’ and ‘what is included in ERP’ in a way that hides true costs. We define user types and what functions are included in ERP in the buyer’s favor, which is a large contributor to the savings that can be achieved.

Control purchase terms, lower (COMPANY) risk, and preserve cash:  We help you establish purchase terms that enable your company to buy licenses when they are needed and at a predicable cost. This is contrasted to most ERP purchases in which the buyer pays for all or most licenses up-front. These normal purchase terms have many negative ramifications to the buyer and are completely unnecessary when purchasing a product like software that has no incremental cost to release the next copy.

Control ongoing costs (maintenance fees): We seek to establish maintenance fees that are competitive, tied to performance (when software is installed and not just purchased), and that do not contain abusive escalation terms.

Fully understand costs—no surprises: Understand software and other IP costs so there is no unclear or hidden costs that surface later. This includes a review for contract language that is one-sided in the software vender’s favor.