How SMBs Can Cut ERP Costs With Support Services

Enterprise Resource Planning (ERP) systems are essential for streamlining operations, enhancing productivity, and improving data-driven decision-making for small to medium-sized businesses (SMBs). 

However, the costs associated with maintaining an ERP system can be significant, making it challenging for SMBs to afford the resources needed for ERP management. 

By leveraging support services, SMBs can effectively manage and reduce these costs without compromising on the efficiency and functionality of their ERP systems.

In this blog, we discuss the costs that can come with ERP software and how support services help to cut them drastically. Let’s dive in!

7 Key Cost Factors Of Maintaining ERP Software

When every dime matters, it is crucial to fully understand the true costs of maintaining an ERP solution. Besides the initial costs of your software, here are a few other costs to consider. 

Upgrades

Upgrades are crucial for keeping your ERP system secure, functional, and up-to-date with the latest technological advancements. Regular upgrades ensure that your ERP software remains compatible with other systems and meets your evolving needs.

Cost Implications:

• Software Costs: Upgrades may involve purchasing new versions of the software.
• Implementation Costs: Installing upgrades can be complex and may require professional services.
• Downtime: There can be operational downtime during the upgrade process, leading to potential productivity losses.

Features

As businesses grow and evolve, the need for additional features or modules in the ERP system arises. These features can enhance functionality and support new business processes.

Cost Implications:

• License Fees: Additional features or modules often come with extra licensing costs.
• Customization Costs: Tailoring new features to fit specific business needs can be expensive.
• Training Costs: Employees need to be trained to use new features effectively.

Integrations

An ERP system needs to integrate seamlessly with other business systems such as CRM, accounting software, and e-commerce platforms to ensure smooth data flow and operational efficiency.

Cost Implications:

• Integration Tools: Purchasing or developing integration tools can be costly.
• Technical Expertise: Integration often requires specialized skills, either in-house or through external consultants.
• Maintenance: Ongoing maintenance of integrations is necessary to ensure continued functionality.

Training

Continuous training ensures that employees are proficient in using the ERP system, which maximizes its potential and improves productivity.

Cost Implications:

• Training Programs: Developing or purchasing training programs can be expensive.
• Lost Productivity: Time spent on training can lead to temporary productivity dips.
• Customized Training: Tailored training sessions may incur additional costs.

Maintenance

Regular maintenance is essential to keep the ERP system running smoothly and to prevent issues that could disrupt business operations.

Cost Implications:

• Routine Maintenance: Costs associated with routine check-ups and performance monitoring.
• Troubleshooting: Resolving issues as they arise can be costly and time-consuming.
• System Downtime: Unplanned maintenance can lead to operational downtime.

Process Fine-Tuning

Business processes evolve, and the ERP system must be adjusted to accommodate these changes to maintain efficiency and effectiveness.

Cost Implications:

• Business Analysis: Analyzing and understanding process changes can be resource-intensive.
• Customization: Adjusting the ERP system to align with new processes often requires customization.
• Training: Employees may need additional training to adapt to new processes.

Development Team/Consulting

Having access to skilled ERP developers and consultants ensures that your system is well-maintained and continuously optimized to meet business needs.

Cost Implications:

• Salaries: Hiring full-time developers or consultants can be a significant expense.
• Consulting Fees: External consultants charge premium rates for their expertise.
• Project Costs: Specific development projects can incur additional costs.

SMBs Can’t Afford Full-Time IT Staff

Unlike large corporations with expansive budgets, SMBs often operate with tight financial constraints, making it difficult to justify the expense of a full-time IT professional. 

Hiring a full-time IT professional can be expensive. According to industry data, the average salary for an IT manager in the United States is $109,707 a year, excluding benefits. For a small business, this is a significant financial commitment.

Beyond salary, businesses must consider the additional costs associated, including:

• Health insurance
• Retirement contributions
• Taxes
• Ongoing learning
• Other benefits

These expenses can add up quickly, making the total cost of a full-time IT employee even more prohibitive. However, this doesn’t mean SMBs must compromise on the quality and reliability of their IT infrastructure. 

Specialty Support Services Save You Money

The associated costs of an ERP can be a significant burden, especially for small to medium-sized businesses. This is where specialty support services come into play, offering a cost-effective alternative to in-house teams and high-priced consultants. 

Here’s how specialty support services can save you money.

Personalized Consultations & Support

Personalized consultations ensure that your ERP system is tailored to meet your specific business needs. This customization enhances the system’s efficiency and effectiveness, directly contributing to improved business performance.

But as an SMB you aren’t going to need a full-time employee and you definitely can’t afford generic IT consultants who nickel and dime your company. Enter specialty support services.

No In-House Team Required

By opting for specialty support services, you eliminate the need to hire a full-time in-house team. This can save significant costs related to salaries, benefits, and training. 

You get a fractional CIO who has experience with businesses just like yours and knows exactly what you need to get a return on your IT investment. 

Avoid High Consultant Fees

Unlike general consultants who charge exorbitant fees for advice, specialty support service providers offer experienced industry professionals who provide personalized help without the hefty price tag. 

They understand your business and ERP needs, providing targeted solutions without the overhead of generic consultancy fees.

Community Shared Integrations 

Integrations are crucial for ensuring your ERP system works seamlessly with other software and platforms your business relies on. Effective integrations enhance workflow efficiency and data accuracy, which are crucial for your business’s success.

Luckily leveraging industry-specific support services and their community integrations allows you to cut costs while staying competitive. 

Shared Costs

Specialty support services often work with multiple clients in the same industry. This allows them to share the costs of developing and implementing integrations across their client base. 

Instead of bearing the full cost alone, you benefit from a shared expense model, significantly reducing your individual costs.

Community-Driven Solutions 

Leveraging the community of users supported by these services can lead to collaborative solutions. 

As common challenges are identified and addressed within the community, the costs associated with ongoing maintenance and customizations are distributed, resulting in lower expenses for each individual business.

Work With Industry Specific ERP Partners

Specialty support services provide a strategic advantage for businesses looking to maintain and optimize their ERP systems without incurring excessive ERP costs. 

By embracing specialty support services, SMBs can focus on growth and innovation, confident that their ERP needs are being met in a cost-effective manner.

At Khameleon not only do we offer cutting-edge industry-specific ERP software for project-based dealers but we also provide expert support services. 

This way instead of throwing away money on a full-time employee who isn’t fully utilized, you can invest your money in growth opportunities. 

See how Khameleon can help you cut ERP costs. Schedule a free demo.