The Strategic Advantage of Hiring an ERP Consultant

Now comes the real challenge: How do you ensure this new ERP system is the right fit for your company?

Selecting the right ERP system is critical to your organization’s success. Whether you are a manufacturing firm, a distribution company, or an expanding retail chain, having the right ERP system is essential.

Selecting the right enterprise software involves more than just comparing features or costs — it requires a thorough evaluation of your company’s specific needs, the latest technologies available, and an understanding of the long-term value the system will provide.

An ERP Strategy is Key

In this article, I’ll explain why hiring an enterprise resource planning consultant is critical to ensuring the success of your ERP implementation project. Drawing on my 30+ years of experience as an ERP provider and publisher, I’ll break down the role of ERP software consultants, the critical value they bring to ERP projects, and essential factors organizations should consider when selecting the right consultant for their ERP needs.

Understanding the Complexity of ERP Projects

ERP software projects are inherently complex because they integrate various core business functions into a single system. ERP solutions consolidate processes such as finance, procurement, production, supply chain management, and human resources into one business process management software platform to provide visibility and business process improvement across all operations.

The complexity of an ERP implementation project goes far beyond the software itself. The process involves selecting the right system, managing vendor relationships, migrating data, testing, and training.

One of the most common mistakes I see organizations make is underestimating the complexity of their ERP implementation project.

Many companies are tempted to manage their ERP implementation internally, believing they can save money by avoiding consultant fees. However, this approach can backfire if the internal team lacks the necessary expertise and experience.

Common Challenges of ERP Implementation for Internal IT Teams

Limited Expertise

ERP projects require specialized knowledge and experience that internal teams often lack. While your IT department may be skilled in managing day-to-day operations, they may not have the expertise to evaluate and implement a complex ERP system.

Bias

Internal stakeholders may have biases or preconceived notions that influence their decision-making. For example, they may favor a particular vendor due to previous relationships or familiarity, even if that vendor is not the best fit for the organization’s needs.

Conflicting Priorities & Resource Constraints

ERP projects require significant time and resources, which can stretch internal teams thin. Employees already managing their regular responsibilities may be unable to dedicate the necessary effort to the ERP project.

Risk of Scope Creep

Without strong project management, ERP solution projects are susceptible to scope creep, where the project’s objectives expand beyond the original plan. Scope creep can lead to budget overruns, delays, and a system that does not meet the company’s needs.

Difficulty in Negotiating with Vendors

Internal teams may lack the leverage and knowledge to negotiate favorable terms with enterprise resource planning vendors. An experienced consultant can bring significant value in this area, ensuring the organization gets the best deal possible.

The Many Roles of ERP Consultants

An ERP consultant is far more than just a technical expert. They act as strategic advisors who guide companies through every stage of the ERP lifecycle. Their involvement can range from helping with vendor selection to managing the implementation process and ensuring the system delivers the expected business value.

Let’s explore the key roles and responsibilities of an ERP consultant and why their involvement is critical to the success of your project.

Key Roles and Responsibilities of an ERP Consultant

ERP consultants serve as trusted advisors, helping companies define their needs and set realistic goals for the ERP project. At the start of any project, organizations often focus on specific features or technological aspects of enterprise resource planning systems without fully considering how the system fits into their broader strategic objectives.

For example, strategic alignment in the manufacturing and distribution sectors might involve optimizing supply chain processes, improving inventory management, or enhancing production efficiency. The consultant’s role is to ensure that the chosen ERP software solutions support these goals and provide a solid foundation for future growth.

ERP consultants often act as project managers, ensuring the ERP implementation is executed smoothly and stays on track. Due to the number of moving parts involved, project management is critical in ERP implementation. Without proper oversight, projects can quickly go off course.

An experienced ERP consultant develops a concise project plan with timelines and deliverables, coordinating with internal teams and vendors to keep tasks on schedule. They manage expectations by clearly defining project scope and success criteria for all stakeholders.

Managing change within the organization is one of the most challenging aspects of any ERP project. ERP systems often require significant adjustments to existing business processes, and employees may resist these changes, particularly if they feel that the new system will disrupt their daily work routines.

ERP consultants act as change agents, helping to manage the transition smoothly. They work closely with teams to communicate the new system’s benefits and ensure that employees are adequately trained and prepared for the changes. Change management is critical in manufacturing and distribution settings, where long-established processes are standard.

ERP consultants bring the technical expertise needed to configure the software. ERP systems are highly customizable and must be configured to meet each organization’s unique needs. ERP systems must be integrated with other systems in the manufacturing sector, such as manufacturing execution systems (MES) or product lifecycle management (PLM) software. Similarly, in distribution, ERP systems need to integrate with warehouse management systems (WMS) and transportation management systems (TMS).

A good ERP consultant manages these integrations effectively, ensuring the new system works seamlessly with the existing infrastructure.

A skilled ERP consultant will help you identify potential risks early in the process and develop mitigation strategies. This involves conducting a thorough risk assessment at the start of the project, developing contingency plans for possible issues, and monitoring the project closely to ensure that risks are managed effectively.

One of the most common risks in ERP projects is scope creep, which occurs when the project expands beyond its original objectives. An experienced ERP consultant will help define a clear project scope, set realistic expectations, and monitor progress to prevent this from happening.

Benefits of Hiring an ERP Consultant

While some organizations may attempt to manage their ERP projects internally, the complexities often make this a risky decision.

Five Key Reasons to Hire ERP Consulting Services

1. Expertise in ERP Systems

ERP consultants bring a wealth of experience and specialized knowledge to the table. They have typically worked on multiple ERP projects across various industries, giving them a deep understanding of the challenges and best practices associated with ERP implementations.

2. Unbiased, Vendor-Neutral Recommendations

One of the most significant advantages of hiring an ERP consultant is that they provide an objective, third-party perspective during the selection process. Internal teams may have biases based on previous experiences or vendor relationships. An independent consultant can provide a neutral assessment of the available options, ensuring the selection process is based on objective criteria.

3. Speed and Efficiency

ERP consultants are experts at navigating the complexities of ERP projects. They have established methodologies for vendor evaluation, project planning, and stakeholder coordination. They can help avoid unnecessary delays and ensure the system is deployed on time and within budget. Often, companies that hire ERP consultants complete their projects faster and with fewer disruptions than those that manage the process internally.

4. Risk Management

From data migration issues to user adoption challenges, numerous potential pitfalls can derail a project. A skilled ERP consultant will conduct a thorough risk assessment at the start of the project, identifying potential issues and developing strategies to address them. Developing a comprehensive change management plan that includes communication strategies, training programs, and support systems to help employees adjust to the new system is essential.

5. Focus on Core Business Activities

ERP projects can be incredibly time-consuming and resource-intensive. Managing an ERP project internally often requires vital employees to take on additional responsibilities, which can lead to burnout and reduced productivity in other business areas. By hiring an ERP consultant, you allow your internal team to focus on their core responsibilities while the consultant manages the day-to-day tasks of the ERP project.

Choosing the Right ERP Consultant

Selecting the right ERP consultant is critical to the success of your project. It’s essential to evaluate potential candidates carefully.

Key Factors to Consider When Choosing an Enterprise Software Consultant

Experience and Certifications: Experience is among the most important factors when selecting an ERP consultant. Look for consultants who have completed similar projects, particularly within your industry. Ask for case studies or examples of their past work to understand their experience and expertise.

Certifications can also be a valuable indicator of a consultant’s qualifications. Many ERP vendors offer certification programs for their products. A consultant certified in the system you are implementing will understand its capabilities and limitations.

Technical and Functional Skills: ERP projects require a combination of technical and functional skills. The consultant you hire should have expertise in system configuration, data migration and integration, plus a thorough understanding of your business processes.

Cultural Fit: Cultural fit is often overlooked but can be critical to the success of an ERP project. A consultant who aligns with your company’s culture will integrate more smoothly with your team and foster better collaboration. Discuss your company’s values and culture with potential consultants during the interview process. Notice how they respond and whether they align with your organization’s way of doing things.

Communication and Interpersonal Skills: Effective communication is essential for the success of any ERP project. The consultant you hire should be able to explain complex technical concepts in simple terms and manage expectations across the organization. Pay attention to how they communicate and whether they can break down technical jargon into language that non-technical stakeholders can understand.

References and Background Checks: Before making a final decision, check the consultant’s references and conduct a thorough background check. Ask for references from previous clients and take the time to speak with them about their experience working with the consultant. This will give you valuable insights into the consultant’s work ethic, problem-solving abilities, and overall effectiveness.

Taking the First Step in Hiring an ERP Consultant

In my 30 years in the ERP industry, I’ve seen the impact the right ERP system can have on a business. By leveraging the skills and experience of an ERP consultant, organizations can confidently navigate the complexities of ERP projects, ensuring that their ERP system delivers the desired outcomes and supports long-term success.

If you’re considering an ERP project, I encourage you to start with our ERP comparison tools and also to contact our team of ERP experts for initial selection advice.