ERP Partner vs ERP Vendor: Which Implementation Does Your Business Need?

Are you planning to embark on an enterprise resource planning software selection journey? If yes, there are a few questions you will have to find answers to. Questions such as should you opt for an ERP vendor or an ERP partner, what value does each bring to the table, what they actually do, and are they same or do they differ, etc. need to be quickly taken out of the way.

In this article, we attempt to answer all these questions for you, so that you can decide which one of the two is best for your business. Read on:

Overview

Imagine this: After thorough review and analysis, an organization decides to go for an enterprise resource planning software — or simply an ERP — implementation. By working tirelessly and undertaking meticulous planning, it manages to bring all the key internal stakeholders such as the owners or promoters, the top executives, and the other key resources who head the different departments, on the same page.

Now, there’s a general feeling that all the boxes have been checked to initiate the process of bringing in a new ERP software. But have they actually been checked?

While the organization has taken the considerations of the internal stakeholder group, it is missing out on paying attention to the external stakeholder group, which may include the ERP vendor or partner, and is equally important to the success (or failure) of the ERP implementation project.

This could be your organization- standing on the threshold of making an important decision, and yet being clueless.

Or maybe not! If you pay as much attention to evaluating this external group as you give to evaluating the solution itself, and reach to an objective decision as to which one of the two — ERP vendor or the ERP partner — is good for your business, you can avoid being in that situation.

Let’s discuss this ‘ERP vendor vs ERP partner’ topic in a bit more depth by understanding the two of them.

ERP vendor, and its role

An ERP vendor is nothing but the company that develops, sells, and implements ERP software solutions. The vendor is responsible for the ongoing development of the software, and its maintenance, which includes updating it and fixing its bugs. At the same time, a vendor is also responsible for rolling out the new features, enhancements, and versions of the software.

A good ERP vendor is one ??stable and has a terrific track record of successful implementations that never go beyond the stipulated time and budget. A good vendor also has a vast clientele to boast of, and a number of successful products in its products line. Also, most ERP software vendors prefer selling their products directly to their customers.

Understanding the ERP partner

An ERP partner, on the other hand, helps you license and implement the ERP system that you select. In many cases, an ERP partner also helps businesses identify the right software based on their specific needs as well as business processes, and provides services, training, and support that they won’t necessarily find in packages that come from an ERP vendor.

Also sometimes known as a value-added reseller (VAR), a good ERP partner is someone who has many successful ERP system implementations across many different industries under their belt, tailors the software to your business’ needs, and ensures that your implementation goes on smoothly.

Value they bring to the table

One distinct advantage you get while working with an ERP vendor is that you have only one relationship to manage. You are directly connected to its dedicated support team, which is well equipped, informed, and aware of the working as well as the intricacies of the product, and that of your business processes requirements.

Another advantage the vendor implementation offers is greater understanding of your specific business needs, and providing specialized services for the same. For example, if you are operating into chocolate manufacturing micro-vertical within the food manufacturing industry, you’ll be better served by an ERP vendor who provides micro-verticalized software solution for chocolates.

Whereas, a good ERP partner comes in with certain benefits too. Say if yours is a business located in Melbourne, and the vendor of the software you’ve chosen is based out of New York, you may opt for an ERP partner implementation, taking on board an expert, locally-based partner. This way, you’ll get more personalized attention.

There are a few other points to note, such as an ERP partner can act as the bridge between your ERP vendor and providers of any third-party solution you choose to integrate, it can help you with customizations to your selected ERP system, and lastly, it can stick around with you in the long term and help you get the most out of your ERP solution.

How the two differ?

Let’s understand the two even better with this clothing store analogy. So, you want to buy a nice business suit. You walk into a clothing store, where, after careful consideration, you pick the suit you want from among the many options available. Finally, a tailor helps it fit exactly to your size.

Here, the clothing store represents your ERP vendor, and the tailor represents the ERP partner.

Vendor or partner: who should you work with?

ERP vendor and ERP partner both have their own set of advantages, and quite honestly that?makes it all the more difficult to decide which one’s best for your business.

But instead of making this tricky choice, why not have the best of both worlds?

Think of choosing an ERP software vendor with the values of a partner; one who understands your needs fully, and someone you can rely on wholeheartedly. A vendor who shares the mutual goal of growing your business, offers impartial advice and solutions that work for your business, and one who’s willing to walk all the way with you, is who you should be looking for.

Wrap up

There are other important factors too, apart from the ones mentioned above, like the budget, technology & future scalability, and the implementation timeframe, etc., that should be considered, and final decision of selecting the one who fits in your broader framework of requirements should be made only after taking everything into consideration.

We, at BatchMaster, help process manufacturing businesses across the world grow and thrive. Our commitment towards helping organizations achieve their business objectives and maximize their ROI never ends with just implementing a solution, but stays for as long as our association exists, in the same unwavering manner.

To learn how we can help you, write to our team to book a consultation, today.