ERP Implementation Cost Break Down

June 4, 2020 by
Hesham Deya

One of the most important roles of the business management team is to make tough decisions on how to manage internal and external resources, and to guarantee the flow of operations in an organisation. In the recent past, a major debate has been on ERP implementation and the benefits it can bring to your business. It can be difficult to determine the needs for ERP software solutions for your business, but there are a number of common indicators no matter the size or type of business.

Are you having multiple software solutions for different functions? How fast are your accounting processes? Here are some of the signs that your business requires an ERP system.

ERP (Enterprise Resource Planning) is an application that integrates various business units and functions to manage all aspects of your business ranging from product design, accounting, sales management, inventory management, human resource management and administration among other operations. The ERP system may vary in terms of the number of modules depending on size of your organisation and the type of transactions. However, ERP implementation will cost you from a few thousand dollars to millions of dollars, but the investment will surely increase business efficiency and lower the operation costs. OdooTec is a reputable ERP company in Saudi Arabia that provides top notch software to manage E-commerce, POS, project management, HR and inventory control functions.

How Much Will ERP Solution Implementation Cost?

The cost of ERP implementation depends on a number of factors including:

Cost of the ERP Solution

  • The size of the ERP Application – ERP systems have different modules for various business processes. Some of the popular examples of ERP modules are accounting, sales, inventory, production, project management and CRM. The more the modules that you require pays off to connect the entire business through an ERP solution. 

  • Infrastructure – You have the option to host the application locally or go for hosted or cloud services. If you don’t have the infrastructure already in place, choosing cloud services is the cost effective option as it lowers the initial implementation costs.

  • Licensing Costs – You may be required to pay monthly or annual subscriptions whose cost depends on the number of users and features of the system. The more the users in your company, the higher the licensing cost. A good way to avoid licensing cost is use of Open ERP and only subscribe to customization and maintenance.

Cost Of Setting Up The System

  • Consultation fees – You will spend a few coins to an ERP expert to analyse your business objectives, collect system requirements, and plan the development process.

  • Development Costs – This is the cost of modifying the different system modules to fit your specific requirements. This includes system configuration, customization and integration with other business solutions. You can reduce the development cost by reducing the level of customization, but it is always important to personalize the system to your business process to enjoy maximum benefits. 

  • User Training Costs – You may require to train the system users to enhance both efficiency and workflow. This may involve live training sessions, proper documentation (user manual) or a simple support module. These costs comprise the trainer fees and employees time and may depend on the level of expertise of the system users. 

ERP Software maintenance

ERP maintenance expenses include the cost of installing updates and upgrading the system. As your business grows, you will need to add more functionality for the new business needs. This will also involve the future support for the application. 

Though the cost of implementing an ERP solution may seem too high for your business, it will help to reduce the cost of labour and improve the business efficiency. If you are looking for a reliable ERP company in Saudi Arabia, OdooTec will be delighted to help you out. 

OdooTec is a renowned Odoo Golden Partner in Saudi Arabia . We offer software for warehouse management, project management, POS management, construction management, fleet management, manufacturing and much more. We are also the leading Odoo company in Saudi Arabia. For further information, please contact us.

Hesham Deya June 4, 2020
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