Federica Pelloni Ziliani ID # 0852125
MIST 610 MO1 FIRST WRITING ASSIGNMENT
An ERP system may be defined as a packaged business software system that helps companies to manage resources. It makes the companies more effective and efficient by providing an integrated solution for the organization's information processing needs.
ERP system provides firms with 2 main functions: the transaction processing function, which allows the integrated management of data through the entire company, and the workflow management function, which controls all the functions in the ...view middle of the document...
Therefore to have the best result the retailer should make a list of features that he wants inside the software, that would fit his company and that he thinks are important to appear in his ERP system. It is also important to prioritize them since maybe for budget related reasons he would not be able to have them all, considering the fact that the cost of an ERP system increase with the increase of the customization.
Another important step while choosing the right ERP system for a retailer is to find the package that best fit the industry in which the retailers is. A retailer could be a liquor store, a grocer a dry cleaner and much more. So every retailer need to select the system with the specific features of their unique retail segment.
When it comes the moment of buying an ERP system another key consideration has to be addressed to the size of the business. When building a list of systems to evaluate them, retailers should consider not only their current scale but also their future expected growth.
Retail businesses face some of the higher turnover of any industry. So it is critical for them to get new staff and running it on their systems quickly. For this reason central is finding a system that is highly intuitive and easy to use. It is important that a retailer tries a demo of the system himself and to evaluate how easy it is.
Another important step for the selection of a system is to assess the support and the upgrades related to the system that the retailer wants to buy. It is important to evaluate the efficiency of the support and the customer service because during the life cycle of an ERP a retailer would probably need support once in a while. To evaluate the system’s support a retailer should consider if it gives a twenty-four hour support for example, or if it is a call center or an on site support and these kind of details.
A retailer should also keep in mind that sometimes mistake happen and when it is the case if the implemented ERP software is coming from a different firm than hardware and services it will be more likely that each one of them will blame the other for the mistakes. So often is much more reasonable if possible to have a single point of view and the best strategy is to buy the system from a single source that can provide hardware, software and services a retailer needs.
When buying an ERP system, the software itself is not the only thing a retailer is buying. The retailer is entering in a long-term vendor relationship, so when choosing the product is very important to assess the software viability, considering if the vendor will invest in development, or will maintain the same efficient support. All these consideration can make a big difference for a retailer. Therefore a retailer has to make sure to evaluate the vendor’s reputation, financial well-being, and their vision for the future.
Obviously another important factor for choosing the ERP system is the price. However, the price approach only will...