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The Average Cost of ERP Systems: A Simple Guide

by Michael George May 31, 2021
written by Michael George May 31, 2021

Are your current business processes inefficient or lack automation? Have you outgrown your current software program? If so, then you should consider upgrading to something that can cover all your processes in one robust program.

Don’t worry if you don’t know what the right solution is or if you can afford it. We’ve got you covered. So, keep reading to learn all about ERP systems and what the real cost of ERP solutions is for your business.

What Is an ERP System?

Enterprise resource planning software (ERP), helps to plan and manage the various processes needed to run a successful business or organization. These processes include your finances and accounting, your supply chain, and your manufacturing department. Anything that can help your business run smoothly can be planned in an ERP software program.

Your ERP software will connect everyone on your team so they can all be on the same page. This will improve productivity and efficiency for everyone. And with many companies transitioning to remote work, many ERP systems are housed on the cloud making them accessible to anyone with an internet connection.

What Are the Benefits of ERP Systems?

Some of the key benefits of an ERP program include improved business processes through planning and automation. It also offers cost savings as you will have a better view of your inventory levels and production schedule.

Lastly, and most importantly it will offer better customer service as information won’t be siloed away by the department. Everyone can see where a product is whether it’s being made, shipped, or sold. Enhanced business reporting will allow everyone from marketing to customer service to the C-suite a birds-eye and real-time view of your organization.

How to Calculate Enterprise Resource Planning Cost

While many executives understand the benefits of an ERP program, it can be daunting to understand the exact ERP prices of a quality system. Many cloud-based SaaS ERP programs offer a standard per user, per month pricing strategy. The price point for this will vary based on the features you need and can range from $50-$150 per month per user.

However, you also need to consider implementation costs when choosing the right ERP program for your organization. Will you need to invest in certain customization to optimize the program for your company? Should you bring in a consultant to help your team transition to this new program?

There’s no point in investing in a new program if nobody knows how to use it. So, after you upgrade consider bringing an expert in to help your team adapt to this new change. That will empower everyone on your team to use your new program to its fullest capabilities.

Lastly, as you consider the full cost of upgrading your business processes, consider what hardware will need to be upgraded as well. Are your data servers up to date and fully secure? If not, this is an important and valuable investment to keeping your business on the cutting edge of your industry.

You Can’t Afford to Not Upgrade Your System

The initial cost of ERP programs might make some executives flinch. But you know that your business is growing and you need to invest in your processes as much as you do the rest of your equipment. And when you consider the savings in efficiency and improved customer service, it makes the investment a no-brainer.

For more great information on this and other topics, check out the rest of our blog.

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