What is ERP consulting? Process, benefits, cost

In the world of modern business, the term ERP (Enterprise Resource Planning) is increasingly important. ERP systems help organizations integrate their key business processes, including accounting, supply chain management, inventory control, human resources, and more, into one unified system.

However, implementing ERP systems isn't a simple task—it requires expertise and careful planning. This is where ERP consulting comes into play.

But what is ERP consulting? In this blog, we will explore what ERP consulting entails, the role of ERP consultants, the process they follow, and the benefits they bring to organizations looking to implement or optimize their ERP systems.

What is ERP consulting?

ERP consulting refers to the specialized service provided by experts who assist businesses in selecting, implementing, and managing ERP systems. ERP consultants are skilled professionals with extensive knowledge of ERP software and the industries that use them. Their role is to understand a company’s specific needs and help tailor the ERP solution to meet those needs effectively.

In simpler terms, ERP consulting is the bridge between ERP software and the business, ensuring the successful deployment and use of ERP systems. ERP consultants provide guidance on selecting the best ERP software, customizing it to fit business processes, and ensuring its smooth operation over time.

The role of an ERP consultant

To fully understand what is ERP consulting, we must dive into the various roles an ERP consultant plays in the ERP implementation process. ERP consultants bring a mix of technical expertise, project management skills, and industry knowledge to the table. Here are the key responsibilities of an ERP consultant:

1. Needs assessment: Before any ERP implementation can begin, an ERP consultant must assess the company’s needs. This involves studying the existing business processes, identifying pain points, and understanding long-term goals. Through this detailed analysis, the consultant can recommend the best ERP solution for the organization.
2. ERP selection: Choosing the right ERP system is a critical decision, and not all ERP solutions are one-size-fits-all. Based on the business needs and industry standards, the ERP consultant helps businesses evaluate different ERP systems and choose the one that best aligns with their objectives.
3. Customization and configuration: After selecting the ERP system, the ERP consultant works to customize the software to fit the specific needs of the business. This can involve adjusting workflows, integrating third-party applications, and configuring the system to match the company’s operational structure.
4. Project management: Implementing an ERP system is a complex project that involves multiple departments within an organization. ERP consultants manage this process, ensuring deadlines are met, resources are allocated correctly, and communication flows smoothly between teams.
5. Training and support: A crucial part of ERP consulting is training the company’s staff on how to use the new system. ERP consultants provide detailed training sessions, ensuring that employees understand the functionalities of the software. They also offer ongoing support to troubleshoot any issues that arise post-implementation.
6. Post-implementation optimization: Once the ERP system is in place, ERP consultants continue to work with businesses to optimize system performance. They monitor the system's usage, recommend updates or improvements, and ensure that the software is helping the business achieve its goals.

Why do businesses need ERP consulting?

Now that we understand what is ERP consulting, the next question is: why do businesses need ERP consultants? Implementing an ERP system is a major organizational shift.

It requires careful planning, technical expertise, and strategic execution to ensure that the system delivers the expected benefits. Here are some key reasons businesses turn to ERP consultants:

1. Expert guidance: ERP consultants are experts in their field. They have in-depth knowledge of various ERP systems and understand how to implement them successfully in different industries. This expertise ensures that businesses make informed decisions when selecting and configuring their ERP software.
2. Cost and time efficiency: ERP implementations are time-consuming and can be costly if done incorrectly. By hiring an ERP consultant, businesses can avoid costly mistakes and delays, ensuring that the project stays on track and within budget.
3. Tailored solutions: Each business is unique, and so are its ERP requirements. ERP consultants help customize the system to match the company’s specific processes, ensuring that the ERP solution is aligned with business objectives and operational workflows.
4. Risk mitigation: ERP implementations can be risky, with the potential for disruption to business operations if not handled properly. ERP consultants help minimize these risks by managing the project with precision, ensuring that the transition is smooth, and the business continues to operate efficiently throughout the implementation process.
5. Training and change management: Transitioning to an ERP system can be overwhelming for employees. ERP consultants provide structured training programs and guide companies through the change management process, helping employees adapt to the new system and ensuring they can use it effectively.

The process of ERP consulting

The ERP consulting process typically involves several key phases. Understanding these phases can help businesses get a clearer picture of how ERP consultants operate. Here’s an outline of a typical ERP consulting process:

1. Discovery phase: This is the initial phase where the consultant meets with stakeholders to understand the company’s current business processes, pain points, and objectives. During this phase, the consultant gathers requirements that will shape the ERP solution.
2. ERP selection: Based on the discovery phase, the consultant recommends a shortlist of ERP solutions that would be the best fit for the organization. This phase may involve conducting software demos, comparing vendors, and evaluating costs.
3. Planning and design: Once the ERP solution is chosen, the consultant creates a detailed implementation plan. This includes designing how the ERP system will integrate with existing processes, configuring modules, and preparing data migration strategies.
4. Implementation: The actual implementation of the ERP system begins in this phase. The consultant oversees the installation of the software, configures the system according to the company’s needs, and ensures data migration happens seamlessly.
5. Testing: Before going live, the ERP consultant conducts extensive testing to ensure that the system works correctly and is configured to handle real-world scenarios. Testing helps identify and fix any issues before the system is launched.
6. Training and go-live: Once testing is complete, the ERP consultant provides training to the company’s employees to ensure they can use the system effectively. After training, the ERP system goes live.
7. Post-implementation support: The ERP consultant continues to provide support after the system goes live. This includes troubleshooting issues, optimizing performance, and offering guidance on using the system to its full potential.

The benefits of ERP consulting

Understanding what is ERP consulting isn’t complete without recognizing the many benefits it offers to businesses:

• Improved efficiency: By streamlining and integrating all business processes into a single platform, ERP systems help organizations work more efficiently. ERP consultants ensure that these systems are configured to maximize productivity.
• Better decision-making: With an ERP system in place, businesses have access to real-time data and analytics. ERP consultants help companies leverage these insights to make informed decisions that drive growth.
• Scalability: ERP consultants design systems that can scale with the company’s growth, ensuring that the ERP solution remains relevant as the business expands.
• Enhanced collaboration: ERP systems break down silos between departments, enabling better collaboration across the organization. Consultants play a key role in ensuring that the ERP system facilitates this improved communication.
• Compliance and security: ERP systems often come with built-in compliance and security features. ERP consultants ensure that these features are properly configured to protect the company’s data and comply with industry regulations.

The cost of ERP consulting

When considering what is ERP consulting, it's important to factor in the cost associated with hiring an ERP consultant. ERP consulting costs can vary depending on several factors, including the size of the business, the complexity of the ERP system, the scope of the project, and the level of customization required.

Typically, ERP consultants charge by the hour or offer fixed-rate packages, with rates ranging from $150 to $300 per hour, depending on the consultant’s experience and the specific ERP system being implemented. Larger or more complex projects may require longer timelines, thus increasing the overall cost.

While this investment may seem significant, the expertise provided by ERP consultants often leads to long-term savings by avoiding costly implementation mistakes, improving operational efficiency, and ensuring that the ERP system is set up to meet the business’s specific needs. Ultimately, the cost of ERP consulting should be seen as a strategic investment in the company’s future growth and success.

Gestisoft: Experts in ERP consulting

In conclusion, what is ERP consulting? It is a specialized service that plays a crucial role in helping businesses implement and optimize ERP systems. From selecting the right software to managing the entire implementation process, ERP consultants ensure that businesses can fully leverage the power of ERP technology.

They are the trusted advisors who guide organizations through the complex world of ERP, offering expert advice, hands-on support, and long-term value. Whether you’re a small business looking to streamline operations or a large corporation in need of a more robust ERP solution, ERP consultants can provide the expertise and insight you need to ensure a successful ERP journey.

And Gestisoft is here to help you on your journey with ERP implementation. We provide expert ERP consulting services for all businesses in Canada and help you from start to finish with your ERP solutions. If you want more details on our ERP consulting services, then contact our team today for a free consultation.