What does ERP Stand for? How to Select an ERP Software Partner?

Today, I’d argue that selecting the right ERP software partner or implementation team is just as important as or even more important than the ERP software. This is part 3 of 4 in our blog series What does ERP Stand for? Many ERP solutions today are mature products with similar functionality. Although they may all take some unique approaches on how they handle certain areas, there is a lot of functionality overlaps with these ERP software packages. Since the functionality is similar, the services, consulting and advice you will receive from the implementation partner’s consulting team becomes even more important.

The TM Group works with Microsoft Dynamics GP, Microsoft Dynamics SL, Microsoft Dynamics NAV, and Sage ERP X3 through our subsidiary company Greenstone Professional Services. All these ERP software packages are very similar, so the first thing we need to figure out is which would be the best fit for a prospective client. This makes us approach a sales process from a much more consultative approach than most partners or publishers that represent only one solution and is one of the benefits of working with an ERP software partner instead of directly with the ERP software publisher.

Sometimes the ERP software you’re looking at or using might just not be a good fit for your business and you want a partner that will tell you that. Several years ago I had recommended to a client whose business requirements had changed and where no longer fit with one of our solutions, that he should look at one of our competitors who I know was supposed to be strong in those areas. He did review that ERP solution and several others and they went with the first one I had suggested reviewing.

One reason I mention that story is that the ERP software provider they chose didn’t have a partner channel like Sage of Microsoft, and instead sold direct and had a direct implementation team on staff. My client (which we still do customer development work for) told me after their implementation that the good thing about the ERP solution they chose was that they worked directly with the publisher. And, the bad thing about the ERP solution they chose was that they worked directly with the publisher. Since there was no local partner, they often had lower support levels and longer delivery times because their requests would have to be fit into the ERP publisher’s development time tables. My customer isn’t unhappy with their choice which fits their business well from a functional standpoint. It’s just that they are not getting the same service levels they had with a local partner. In fact, he told me he was going to suggest that they should build a partner channel for the solution.

However, not all partners are equal and just because a partner is local doesn’t mean they’ll provide better service and product knowledge. I’ve seen this to be true during the years and just recently The TM Group has taken over many Microsoft Dynamics GP, Microsoft Dynamics SL and Microsoft Dynamics NAV both in Michigan where all our consultants live and from as far away as Utah and Idaho. The customers switched partners to The TM Group, because they were not getting the level of service and expertise they needed from their existing partners.

When choosing an ERP software partner you should look at these things:

• Experience and certifications: What level of partner are they with the solution they are offering and what are the requirements for achieving this certification. Do they have any experience in your industry, which I’d argue isn’t essential but is nice to have. Sometimes, it is better to work with partners with broader industry knowledge because they have a wider spectrum of experience with varied best practices to share during the implementation.
• Methodology: Not only if they have one, but do they use it. Ask to see a sample project plan and when calling references, ask them about how their project was managed and how it went.
• Number of consulting, training and support resources on the product you are considering: If they are an accounting firm with 1,200 employees but only two consult an the product you are considering, then the other firm with 50 employees all focused on the product you are considering will probably service your needs better.
• Educational opportunities: Do they offer free conferences, client briefings, webinars, etc.…
• References: No one is going to intentionally give you a bad reference, so you should also network with your peers and through networks like LinkedIn to see what you can find out about the partner. 
• Culture and whether it matches yours: You’ll be working with these folks form many years, so it is important that they mess well with your company’s culture.
• Lastly, trust your gut. If you don’t like the sales team and think the owner is slimy, then won’t work with them. Find another partner or application you feel more comfortable with and work with them.

To learn more about our ERP software solutions and services, please visit www.tmgroupinc.com or contact us at 888-482-2864 for Microsoft Dynamics and www.greenstonepros.com or 248-919-9520 for Sage ERP X3.