How to reduce Odoo ERP Implementation Costs

An enterprise resource planning (ERP) system is the backbone of your organization because it manages and integrates all of your important enterprise processes. If correctly implemented, ERP solutions lead to greater effectiveness, decrease operating costs, and improved visibility and reporting into your financials. And if you are a distributor or manufacturer, an Odoo ERP solution can optimize your supply chain and provide you with a major edge over your competitors.

Implementing an ERP system is an investment for any industry, and Odoo ERP implementation prices can add up. Occasionally, ERP projects go over price range or over-schedule. So, what are you able to do about this? Luckily, there are specific methods to reduce or reduce your ERP implementation costs. We have rounded up some useful ideas in this blog.

1. Plan and Budget Carefully

Without a radical plan and budget, ERP projects either rack up costs or go beyond the authentic scope. Many times, companies miss some important components of ERP implementation while constructing the project roadmap. What will likely be the price of your software? What is your change management strategy? What shall be your strategy for data transfer? Will there be any hardware, network or monthly costs? Which consultants wouldn’t it take? Who will work on the project, and the way will their frequent job tasks be lined through the project?

If these questions aren’t answered at the beginning of the project, the finished result is disorganization and elevated costs in the future. If your actual costs go over your budget regularly, discover areas where you’ll be able to carry it according to what you’ve to spend on the project or by contemplating alternatives. Careful planning and budgeting are essential to controlling implementation costs.

2. Select ERP Software Based on Your Business Needs

Selecting an ERP software with considerable forethought is essential to reduce the costs of implementation. When you select an ERP system that does not meet your enterprise needs and challenges or makes you purchase more functionality than you need, it’ll cost you money. For maintaining the cost in management, choose an ERP solution that’s simply custom-made in accordance to your organizational needs, flexible sufficient to adapt to altering enterprise requirements, and modular, so that you only purchase the functionality your enterprise needs. But make sure you will have the ability to extend the performance in time to come, and it has a long-term roadmap, so it provides value for cash.

3. Avoid Needless or Excessive Customization

Companies typically fail to contemplate their enterprise necessities and add on totally different options to improve their ERP system, which is not a great strategy. While some customization is required in an ERP system implementation, it may be expensive and inessential at instances. Excessive customization also can make upgrades tough – the customized code sometimes needs changes whenever the vendor issues a new release. So, focus on your most immediate enterprise needs and find out how to use different processes within the system. After bringing out the most important ERP performance, you’ll be able to contemplate further features too. Note that customization needs to be stored as minimum as possible because it will increase implementation costs and the timeline of the ERP project.

4. Focus On Long-term ROI

There needs to be a longtime plan for the best- and worst-case situations for ERP spending throughout the Odoo ERP implementation process. You ought to decide your ROI (return on investment) prior to project initiation and consider the long-term results of your decisions on your organization. This has to be a significant part of your ERP enterprise case. Sometimes, the most budget-conscious corporations find yourself paying an excellent value for their ERP implementation as they targeted on low, upfront cost savings and ignored long-term targets. When you cut corners, you may face problems and miss out on higher ROI.

To reduce a long story brief, ignoring best practices could be of use in decreasing upfront costs, but to improve your software value and decrease the risk, your ERP project strategy needs to be developed round producing long-term ROI.

5. Make the Most of Your ERP Partner’s Expertise

If you hire an ERP consultancy to implement your software, make the most of your advisor’s time. You should rely on them not only for their technical expertise but for enterprise prowess as well. Ideally, they should be concerned in all aspects of your ERP project, from the selection, process management, implementation, and change management. You can also maximize their experience by getting assist in training and ongoing Odoo ERP support with the product. Hiring the right ERP partner is a key element in ensuring your implementation goes off and does not use a hitch.

6. Consider the Cloud

Have you considered a cloud-based ERP solution? Cloud ERPs solutions are less expensive than their on-premises counterparts and cloud ERP has lots of advantages. The upfront prices are decrease, as a most charges on a subscription model, monthly or yearly. You will also save on infrastructure as you do not require any server or hardware as the vendor hosts the system. Cloud ERP implementations are additionally usually faster and cheaper compared to on-premises. According to a Forrester Total Economic Impact (TEI) report, companies who moved to the cloud lowered their deployment prices by an estimated 30% to 50% compared to on-premises ERP.

7. Select the Right Odoo ERP Implementation Plan for Your Business

Set yourself up for ERP implementation success by deciding on the proper sort of implementation for your enterprise, whether a typical time-and-materials implementation, lean implementation, or fixed-fee implementation. There are benefits and disadvantages for every sort, primarily based on your enterprise and desires. For example, if you’re a smaller firm or are upgrading from accounting software, a lean or fixed-fee implementation may assist you to constrain the costs and the timeline of your ERP project.

Final Thoughts

ERP implementations will be pricy and go off-budget, nevertheless it doesn’t have to be like that. By growing a practical budget, planning the project according to the unique enterprise wants, and following the best practices for ERP implementations, your organization can enjoy the advantages of an ERP solution while setting your enterprise up for long-term success.

Got questions? The team at Apagen is happy to assist and inform you through the ERP journey. we are an Odoo ERP Partner, and our consultants carry over 25 years of experience serving companies across the world.

We also offer Odoo ERP Implementation for small and mid-sized companies.