ERP and inventory management selection guide for SMEs

Small and medium-sized enterprises (SMEs) face critical decisions when selecting and implementing enterprise resource planning (ERP) and inventory management (WaWi) systems. To minimize implementation risks, companies should utilize a structured requirement analysis, categorizing needs into mandatory, desirable, and optional criteria.

Key considerations for selection include integration requirements, data flows, and deployment models. While cloud-based ERPs offer faster starts, on-premise solutions provide greater control. Decision-makers are advised to evaluate total cost of ownership over a three-to-five-year period, accounting for licenses, implementation, training, and ongoing support. Testing with real data in a pilot phase is recommended before a full rollout.

When replacing legacy systems, a gradual phase-out is often more resilient than a ‘big bang’ approach, which frequently fails due to poor data quality or lack of fallback paths. Companies must also choose between standard software and custom solutions. Standard software is suitable for processes that align with industry norms, whereas custom software may be necessary if specific processes provide a competitive advantage. A hybrid approach is often utilized in practice.