Don’t overlook ERP costs

////Don’t overlook ERP costs

The major cost components of enterprise resource planning software are well-known to many businesses in the manufacturing and warehousing fields. Because ERP is so popular in these industries, the average manufacturer has more experience with such systems than the owner of a retail business or a professional services operation. Even though more than 90 percent of the manufacturing market uses ERP to improve operations and become more efficient, according to Aberdeen Group, it's common for companies to miss a few major costs when estimating the price of a new management platform.

Organizations need to make sure they're considering the less-commonly mentioned aspects of ERP pricing, including education of employees and the relative value of components based on expected results. TechTarget pointed out that an assumption often made about ERP is that a more efficient process will automatically influence worker behavior and require no additional effort on the part of the organization. Companies need to make sure they don't just choose a system with the best components for inventory and time tracking, but show employees how to utilize the new features as well.

To discuss Microsoft NAV solutions for manufacturing, join the Microsoft Dynamics NAV for Manufacturing LinkedIn group.