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vendor negotiationsWhen you think about ERP systems, everyone immediately asks “how much is the maintenance fees/licensing fees?” and “how many users can I have on this?” But really, the cost of an ERP is much more than that. I think a lot of times people are shocked when they look at the total cost of an ERP system. Here at Panorama, this isn’t our first BBQ. We have done this before, so we are able to help people see this as more than just the physical labor costs, and it is more than just the software costs. A lot of the costs that are not considered are the people-ware costs or the opportunity cost for not doing it.

We have a three-phase plan. We do a technical fit so that you understand what kind of hardware is needed. Maybe you need an IT refresh; maybe you need to re-look at your IT strategy with how many IT folks you need or don’t need. You might need a bigger internet pipe to facilitate the new system. We look at the standard ERP fees: the licensing, the enterprise fees, the maintenance fees as well and any kind of training fees. We also do a business case for you, so that you are aware of the opportunity cost of not committing to this system. We also look for where an ERP could transform your business as well as doing a dollars-and-cents cost so that you can see the labor and non-labor benefits as well, too. We even wrap it up in a nice, pretty bow called total cost of ownership.

The costs are more than what you will see on a website and it is more than just servers, hardware and software. There is an entire ecosystem of costs that need to be considered. We don’t like to hide things and will help you think of the costs you haven’t even considered. One of the big things left on the table after go-live is recurrent training after every 24 months or so. People will forget what was learned in the first training, and you will hire new employees who will need training as well. It’s a great way to maintain the capability you are getting from your ERP system at a very reduced rate if you have negotiated up front.

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