SoftSelect ERP selection process and ERP comparisons
SoftSelect

 

 

 

ERP Selection Webinar

ERP Risks, ERP Risk Control

ERP Cost Control

 

 

We have extensive experience in controlling the cost and terms for buying ERP software. For our clients this typically results in (1) large savings and (2) better control in the life of the business relationship over what is otherwise arranged when buyers are unaware of their options.

Key ERP cost control objectives are to:

Lower costs:  Arrange initial and ongoing costs for ERP licenses and maintenance that are far below normal amounts paid (usually 40% or more). It is important to note that reduced costs are highly influenced by favorably defining (1) what functions are included in ERP, and (2) rights of various user licenses.

 

Control purchase terms, lower risk, and preserve cash: 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, such as software, that has no incremental cost to release the next copy.

 

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

 

Fully understand costs—no surprises: Understand software and other IP costs to greatly reduce unclear or hidden costs that can surface later. This includes a review for contract language that is always heavily one-sided in the software vendor’s favor.

 

Before interaction with candidate software vendors we educate your team on the ERP costs and terms that can be achieved and what tactics or arguments you may hear from candidate software vendors. This coaching builds useful resilience and confidence on this topic for the selection team and executive sponsors.

 

Click here to download white paper on controlling ERP cost.

 

 

Contact Engleman Associates directly for further information on: