Any automated solution may come as an added expense for SMEs. In this case, the expense in the picture is the ERP software price. Especially for SMEs, it may not be the most suitable option to invest hefty amounts in trying out new systems and analyzing what works for them.
Thus, we decided to address the pricing concerns of Enterprise Resource Planning (ERP) for you. In this blog, we will discuss different aspects of ERP pricing in India, and list down a few measures to get a cost-effective ERP for SMEs.
SME businesses are trying to stay ahead of the competition by switching to software that helps them with their digital transition. ERP is one such software that assists companies in boosting their overall productivity and efficiency by integrating and automating all business operations over a single platform.
By providing seamless automation, an ERP system helps you eliminate additional steps in your regular operations that consume time, and enables you and your workforce to focus on more value-adding tasks.
So read on to unlock information about the price of the best ERP software in India for your business:
ERP Software Price
There are many factors to consider when determining the price of an ERP solution such as the number of users in your team that will use the platform and the kind of customizations needed by your business.
Also, the quality of the chosen ERP and its services, define the ultimate ERP software price you need to shell out for your business.
Also, you will need to identify the different modules based on your requirements that you would like to access, in order to use such a solution to its full potential.
All these aspects together will help you to finalize an ERP tool that would cater specifically to your needs, and also help you get the right quote to suit your budget.
To help your decision, let's look at the following key factors that determine the ERP software pricing:
Users
The pricing strategy of most ERP solutions today is based upon the number of users or accounts a company will need, to put a system in place effectively. Say your company has five employees, and only 2-3 of them might need access to your dashboard; then most service providers will quote you a pricing that may be lower than what a company of, say, 60 employees may have to pay.
Say you chose to upgrade to a version that allows ten users to access the ERP software from your organization. Will that be easier on your pocket and what are the charges you will need to pay when you need more than ten users? In this way, you must also keep the scalability charges of such a solution in mind.
Customizations
Business models are complex today and so are their needs; some processes are more complex than the others and may demand customizations. For these reasons, a business may need to get their ERPs customized, for higher productivity.
Unfortunately, not all unique features demanded by a business are inbuilt into a standard ERP. And customizations may not come cheap. Subject to the vendor you chose and the requirements that you put forth, you might have to pay considerable additional charges to get it done.
It's important to assess what will be the charges for such customizations and how that affects the manufacturing ERP software price.
Modules
Modules in ERP are different business verticals or business processes that are integrated by the platform for automation and transparency. Primarily, these modules include procurement, manufacturing, finance, inventory management, order management, production planning and more.
The cost of the software that you shortlist, will be directly proportionate to the modules you seek to automate.
While it doesn't matter significantly for bigger enterprises, to pay for extra modules that they may not use in the near future, this may be an important factor for smaller businesses.
SMEs may not want to pay for anything extra that does not add value to their business. They are in need of specific and limited modules and paying for a comprehensive ERP instead, that covers a wide range of unnecessary modules is typically a waste of money for them.
ERP Implementation Cost in India
When a business discusses the implementation cost of an ERP, the decision arrives on what capabilities does the ERP provide.
ERP solution providers must guide their customers with much-needed insights about the functioning and capabilities of the system. With enough knowledge and information, it becomes easy for SME businesses to clarify expectations, and to decide which ERP software they should finalize.
Depending on the number of users, modules, and your company's specific requirements, the average ERP software price in India could be between Rs. 2,000 to Rs. 10,000 per user per month, which is the basic ERP cost.
Apart from this, you will need to spend additional set-up and implementation charges that might cost you anywhere between a few thousands to a few lakhs. There are certain tools in the market for which the ERP system cost for small businesses, including implementation, may go as high as one crore.
Although these prices are subjective, the actual implementation price may also depend on other factors, such as license fees, modules, features, and remote access capabilities.
Before getting to the point of implementation, always be clear about your business process complexities and the customizations you may need, and how much they cost.
Cost Effective Criteria for ERP
Similar to other products in the market, ERP software pricing in India is also determined in two ways:
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A predetermined price is charged for a number of functionalities
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A customizable solution is created, and prices are kept quotation based.
Most businesses prefer the former solution to avoid hidden charges, but a predetermined price may or may not suit their future business needs, as they use the system over the months.
On the other hand, those who opt for the second, quotation based pricing model, may find themselves unable to assess and calculate all the customizations they need, far in advance.
There's a possibility that several hidden charges like add-ons for databases, reporting tools, emerge once they have started using the tool.
For these reasons, it's important to be aware of all the features available on the initial sign up and other customized or advanced features that are price locked.
Low-Cost ERP Solutions
Following are a few tips are helpful to find an ERP solution that fits your budget:
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Shortlist the software options that require you to pay a predetermined amount and inquire about hidden costs beforehand.
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Avoid ERP software that comes with high implementation costs.
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Consider opting for an ERP Software that meets all your requirements in the best possible way, with its functionalities and advanced features.
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Purchase an ERP system that provides you access for the most number of employees, within the least additional charges.
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Go for a cloud-based ERP system and avoid an on-premise set-up, to save on high infrastructural, hardware, and maintenance costs.
Cost Customization for ERP System
Implementing an ERP solution without proper knowledge can be risky for your business, since you will be investing a great amount of time and effort.
For successful ERP implementation, your SME business needs a deployment strategy to properly plan and prepare the organization for such a transformation. Start by setting a budget, and adhering to requirements to lower implementation costs. Also, ensure to limit the higher costs associated with ERP modification as well.
ERP customization may demand skyrocketing prices in India. But certain levels of customizations may be essential based on specific industries, because a generic ERP may not always serve the purpose. A custom solution with base features and advanced features can accommodate all needs of an SME manufacturing business and is ideal for most enterprises.
Custom ERP systems are offered by vendors based on the needs of your company, and the everyday business challenges you experience. The cost of such a customized ERP solution may vary depending on the number of integrated modules, and custom features.
Pros of customizing an ERP solution:
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It is the best solution for companies dealing with complex business processes. With the help of customizations, you can opt for specific functionalities as required to suit your business operations.
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Customization also empowers you to opt for multiple ERP modules whenever required as your business scales. This will eliminate the need to switch the ERP, because of limited functionalities when your company expands its operations.
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A customized ERP acts as a bespoke solution that specifically caters to your pain points, usually leading to a higher ROI.
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You have the liberty to pay only for the modules that your business requires, without unnecessarily spending for an umbrella package.
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A customized ERP is also easier for users to understand, since it is free of extra complex features.
Cons of customizing an ERP solution:
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Creating a customized solution will require patience, as you will need to explore all the base and custom features offered by an ERP tool and align those with your business operations.
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The ultimate project expense may increase considerably, based on the efforts required by the vendor to understand the complexity of your business operations and provide suitable advanced features.
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Moreover, planning, customizing and developing certain features is usually an expensive process.
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Implementation and complete deployment of such systems is also time-consuming and requires additional effort.
Customizing an ERP can provide significant value for a small scale business. However, it's important to opt for a tool that provides easy to use base and advanced features.
This ensures that you can customize your ERP solution, and also implement it quickly, efficiently and in a cost-effective manner.
Why Is Customer Support Important?
While the cost of ERP software in India is determined based on all capabilities that it offers, an important factor for ERP implementation is also the customer support provided by the ERP vendor. ERP Customer support is provided with the following mediums:
Training and workshops
Especially for SMEs, ERP training and workshops are important to get the staff habituated to working on new automation systems. Neglecting this requirement can impact your employee's efficiency while using the ERP tool.
These workshops are ideally part of the customer support offered by the ERP vendor, but may come as a hidden cost in some cases.
Customizations
As we discussed earlier, customizations may add on to existing ERP costs. However, as part of its ERP solutions, the best business automation software will provide you custom solutions including, diverse base and advanced features based on your budgets and needs.
It will provide you with all the required guidance, to decide which custom solutions are best for your business, as part of their customer support and service.
Maintenance charges
While calculating your overall budget for ERP automation, don't just consider the money you will invest into the deployment of the software. Also, keep in mind the support and maintenance charges you will have to bear afterwards.
Look for a service provider who is clear on these terms and does not leave any details undiscussed.
Personnel cost
Your IT team could be the best in the world, but they may need additional support once you switch to an ERP system. It's important to consider personnel costs based on how complex the ERP tool is.
It's recommended to opt for an ERP tool that is easy to use and does not burden your business with additional hiring costs and efforts. The best ERP software is one that offers adequate business intelligence features that minimize the need for additional staff.
It should also offer top-notch customer support to make it easier for your business to implement the ERP system.
Modules
An ERP integrates different heads of your organization over a single platform and manages several functions like transactions, inventory and production.
While it's great that an ERP tool can provide all these functions on a centralized platform, it's also important to ensure that when you face any troubles, the tool offers dedicated customer support at one place, to help resolve challenges about all of these modules.
Otherwise, you may have to spend a lot of time raising individual queries and pay additional charges, at different locations for guidance on each module.
Cost-benefit Analysis
Many people opt for a cheaper ERP solution because they believe it will help them save extra costs while also benefiting from it. However, this strategy is not always appropriate when you are making a managerial decision like this.
While making such decisions, companies must look at all important metrics including customer support, capabilities of the ERP platform, additional costs, scope of scalability and assess the ROI versus capital invested accurately.
While assessing the ERP cost-benefit value, SMEs must also look at factors such as productivity outcome, efficiency, long-term flexibility, and key performance indicators for the business.
TranZact - Best ERP Software For Manufacturers
When you require a reliable and cost-effective tool with ERP solutions to digitize your business, TranZact is the perfect solution. It is designed specially for SME manufacturers, with specific modules that will benefit an SME manufacturing business owner. This ensures that SME businesses pay only for the solutions that truly benefit them.
TranZact offers unlimited users for both free and paid plans, so that businesses don't have to worry about the number of accesses for individual users at any given time.
It's very easy to use which ensures that SME business owners don't need to hire additional trained staff to use the software. Most importantly, it offers dedicated, and lifetime free customer support that cuts down on several additional costs that enterprises would have to incur otherwise!
Make the Best Choice of ERP for Your Business
A scalable ERP solution grows with your business and provides you with complete operational control and visibility. The software you select should be able to accommodate all your business requirements and ensure you receive the best value on your investment.
With TranZact you can automate and integrate all your business operations while ensuring all costs are in control!
The platform has helped over 10,000+ SMEs to scale. And also offers a free sign up for an unlimited period with all base features, to enable business owners to explore the platform and upgrade to advanced features only when they're ready!
FAQs on ERP Software Price
1. Do small businesses need ERP?
Yes, small businesses can greatly benefit from an automated and centralized business management and ERP system. An ERP can help them to integrate and monitor processes easily with efficiency and transparency.
2. Which is the best ERP software for manufacturers?
The best ERP software for manufacturers is one that is cost-effective, flexible and saves time for business owners by streamlining key functions. TranZact fulfills all these requirements and is also quickly implemented across sales, purchase, inventory and production functions.
It offers seamless Tally Integration for accounting ease along with other integrations for value-driven decision making and ease of business.
