Updated · Originally published
Manufacturing ERP project costs tend to rise quickly as you move toward implementation. For CFOs, this creates dilemmas in budgeting for these projects. The challenge typically comes back to finding ways to curtail costs before the process moves too far. Taking the time to plan and scope your projects up front can yield significant benefits for your bottom line.
Plan It Out
The critical moment comes well before you purchase any software. Your organization needs to come to the table with a sense of what you want to achieve, and what your can do to get you there. To get there, take the time to create a management plan that includes at least the following:
- Project Timelines: Map out your project from beginning to end. When you look at how your will work best, lay out what you can reasonably accomplish, and when. Creating and holding to a schedule helps prevent costs from escalating through unnecessary additions. When you do need to add to your scope, it comes with deliberation and an eye to its impact on your overall project budget.
- Research: Once you know what you want to do, take the time to look at what the market has to offer. Never settle on a first option until you thoroughly vet alternatives for quality and price.
- ROI: Budget impact does not rest solely with up-front cost savings. Look to what mid-term and long-term impact your decisions have on your organization. Usually, efficiency and future savings matter at least as much as immediate cost.
Adhere to Actual Needs
Evolving projects rarely move toward spending that drops below initial expectations. When you move through your timelines, assess with care options that arise. Return to your initial planning stage and determine what, if anything, additions would do to improve your ROI or overall impact on your organization. Never change your scope without reaching a purposeful conclusion that it will improve what you are doing.
Negotiate Your Deal
Remember that vendors with whom you work operate in a client service industry, and that you have options. Don't let yourself be pushed into paying for options or packages your company doesn't need. Stick to your plans and purchase for your own company's purposes.
Manufacturing ERP projects need not run your budget into the red. Click below to learn more about how can help you rein in ERP costs.