Should I Purchase my ERP or Rent it?

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Should I buy or rent my ERP?

Enterprise resource planning software is more essential than ever before, and if you want to gain an edge over your competitors, you must ensure that you are making the most out of your systems. For small to medium sized businesses, Midsize Enterprise Resource Planning (ERP) software is a worthy upgrade from less encompassing programs like QuickBooks. However, using ERP software involves a number of decisions, such as determining whether renting on a monthly basis or if purchasing is best for your business. Here are a few tips for choosing whether to rent or buy your ERP software.

 

Which is Cheaper?

Ultimately, one option will be more cost effective for your particular business in the long run, and saving money on software gives you the flexibility to spend elsewhere. If you know which package you want to purchase and want to commit for the long term, it may be best to buy it outright. When you buy, you own your system and your data. Typically you get a return for your investment within 5 years. When you pay a monthly fee for a SaaS based solution, your data is hosted in the cloud environment and you pay a recurring monthly fee. The convenience of a rented solution is not dealing with, worrying about, purchasing or maintaining infrastructure. To answer which path is cheaper, compare cost over 5 years. In most cases, purchased solutions end up being the less expensive alternative.

 

Is Flexibility Important?

By renting your ERP software, there are limits to customizations. For those new to ERP, having the ability report on data from within the system is crucial. Having the ability to add custom reporting fields is a benefit of a purchased solution. Work with an experienced provider who can assess your needs and determine which system works best for your organization.

 

Are there options?

The software economy is moving toward a model where applications tend to be rented or cloud based. However, a one time capital expenditure may be more suited for companies that prefer not to commit to a monthly fee. If you are interested in taking advantage of a cloud solution, purchased solutions can be placed in a hosted environment and you won’t have to worry about infrastructure expenses.

 

The Right Size For You

ERP software is valuable for businesses of all sizes, as it allows owners and managers to focus on what they do best instead of dealing with financial nuances and logistics. However, it is important to choose the right package for you and decide whether it is best to make a one-time purchase and maintain a program, or rent it and pay ongoing costs.

Advantages of ERP Software for Retail

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Enterprise Resource Planning (ERP) systems are software programs that integrate data and retail business processes into a unified Information System (IS).

Prior to development of  ERP software, the retail industry was consigned to manage all inventory data separately. It’s like going back to accounting using an adding machine.

Fortunately today there are efficient software programs that tie all the logistics of most industries together into one comprehensive program to store, manage, collect and interpret information from all segments of the processes. 

DMS Retail, an online ERP newsletter, says that ERP manages the information from the manufacturing and delivery sector, manages inventory, tracts the cost of production and planning and follows marketing and sales data. 

The system functions from a central database that holds all the data relating to the various modules. In order to achieve a smooth utilization, the ERP system uses various hardware and software units. The system is designed to expedite the applications and optimize internal business processes across an organization. ERP has become the most competitive tool for retail organizations.

The ERP software packages have an enterprise wide reach that offers cross-functional capabilities to the organization. The different functional departments involved in the operations or inventory processes are integrated into a single system. An ERP program takes care of the various business processes such as logistics, order entry,  and warehousing. It integrates different business functions such as accounting, marketing, strategic management and the human resource management.

For more information about how we can help you with your ERP needs, contact us.

Is ERP On-Site the Best Business Solution for You?

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Everyday companies are facing the challenge of how to enhance productivity. Deciding to go with cloud hosting verses ERP (enterprise resource planning) on-site software is tedious since there is really no right or wrong choice, but rather an issue of accessing your company needs and forming a strategy to find the best solution. Here are some advantages to consider regarding on-site software as a viable solution to your business needs. There are numerous advantages to utilizing on-site software, control being the most appealing. Consideration of on-demand or cloud hosting requires no data licensing costs, new infrastructure requirements along with employing third-party services.

With data security being an increasing concern companies are looking for ways to take back control preventing data leaks, security threats and other problems related to sensitive data. By deploying the ERP on-site model a company has the freedom to oversee their systems, data and most important the peace of mind that comes from knowing that critical business infrastructure resides in-house. If companies view employing IT as an investment, that investment is directly proportional to the requested scale solution. The average time frame for an on-site program is approximately 5-7 years.

ERP on-site allows for complete visibility into all the important processes, across various departments in an organization. Multiple geographic locations are also supported by network infrastructure. Although you need a license, the company owns the software. In addition to the upfront cost along with the annual maintenance /subscription renewal ranges about 20-25%.

Is ERP on-site the right choice for you? The answer lies in accessing your company’s needs and applying the best strategy. Cloud hosting is one choice among many, the good thing is it’s not the only option to consider for your business. Your option to determine the best way to grow your company is neither right or wrong however ERP on-site is recommended.

Contact us today to find out more information about how our consultation staff can help you with your manufacturing, distribution and service needs.

ERP for Medical Devices

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The Medical Device industry is closely related to digital health which involves merging of the genetics and digital revolutions with health, living and society. It permits you to track, manage, and improve wellness as well as improve efficiency in healthcare delivery. Some of the important elements of the medical device industry are:

  • Wireless devices
  • Hardware sensors
  • Microprocessors
  • The Internet
  • Mobile area networks
  • Genomics
  • Health information technology

Enterprise resource planning, (ERP), for medical devices is software that allows your organization to use an integrated applications system to manage your business and automate back office functions. Compliance with the Food and Drug Administration and other regulatory bodies is a challenge in the business world. Fortunately, ERP systems bring together the tools needed to meet these challenges. Some of the benefits are:

  • More efficient workflows.
  • Visibility into processes for ongoing improvement.
  • Data re-entry prevention.
  • Improved data security.
  • Facilitation of collaboration activities.

Medical Device manufacturers need customer relationship management capabilities that support relationship sales strategies, mobile field sales, service support, inventory management, marketing, and accounts planning. Two software products available are:

  • Role-Based Workbenches which increase productivity up to 50 percent. They allow workflow to be configured for each user’s role.
  • A Mobile Metrics application that gives you access to your data from a tablet or smartphone anywhere, anytime.

Being successful in the Medical Device industry depends on your company’s ability to produce high quality products faster than your competition. ERP software solutions provide excellent financial management, product management and customer relations management.

For more information contact us.