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American Fastener Journal, November-December 2003

You probably know the dangers of deferred maintenance on your car - wait too long and you could end up by the side of the road.

The same holds true with deferring maintenance on your enterprise software solution - wait too long to upgrade and your business could stall while the competition passes you by.

If you have been waiting to replace or upgrade your enterprise software solution, now is a great time to move forward. Even if you're happy with the software you're using to manage your inventory and orders, track your accounts payable and receivable, and do everything else between, if it's more than four years old, it's likely to be outdated and you could be missing key features that could increase the success of your business.

Before you rush out and buy the first software package you see, there are a few simple steps you should take to ensure you get the best solution for your business.

Getting Started

The first thing to do when shopping for an enterprise software solution is to gather a group of employees that represent a cross section of your company to help you make a decision. Ideally, the team selecting your new enterprise software solution should include a high level executive with long-range vision; line managers from each discipline to ensure proper functionality; and IT staff to ensure that best technology infrastructure for the present and future.

With your team in place, develop a list of requirements and priorities for the new solution. The list doesn't need to be a 200-page document with 10,000 requirements, only a checklist to keep your team focused on solving the problems that are important to you. As software vendors bring up issues that you did not consider, measure them against your vision to determine their importance to your company.

The team should also set a deadline for the selection process. A firm deadline and a list of priorities will help keep everyone focused when met with inevitable distractions.

Once you understand your key issues, you need to define a short list of software suppliers. A quick way to do that is to either search the Internet or scan the advertisements in industry trade publications. To use the Internet go to www.google.com. In the search box type "distribution software," then hit search. This will give you a list of software companies that focus on distribution. Visit each company's Web site to find out if they cover your basic needs and request literature. You may end up with five to ten software companies to explore further.

Call or e-mail the vendors on your list and find out how long the company has been in business. Longevity in a technology provider can indicate whether the company will be around in the future to support your business. Also find out the exact number of fastener distributors they serve. Fastener distribution is very different from other businesses. You don't want to have to teach a software vendor how the distribution industry works. Ask the vendor how much of his budget is annually invested in research and development of its products. If the vendor is not investing in their future, then there will be no future for you.

You also need to know when the product was released and last upgraded and how many customers are using it. You do not want to invest in an old product, but at the same time you do not want to be a guinea pig for a new product. There needs to be a balance. Finally, find out the vendor's vision of the industry and what makes the vendor unique compared to its competitors.

Once you have gotten the answers to these questions, you should be able to identify two or three vendors to start evaluating.

The Evaluation

Start the formal evaluation process by meeting with each vendor. Give them a full understanding of your company's goals and rate them on several key areas according to your list of priorities. In addition, each vendor should demonstrate a firm knowledge of the fastener industry.

When you meet with vendors, ask them to bring copies of the contract they will ask you to sign. If possible, have a lawyer who understands intellectual property contracts review them. Make sure there are no major legal roadblocks now, before you invest too much time with a particular software vendor.

After the interview, invite each vendor to your site to give product demonstrations. Allow the vendors to drive the demonstration, but do make sure they cover all the critical issues that you went over earlier. If you are happy with what you see in the demonstration, phone the vendors' references and talk with long-term users of the solution. Talk to several references and ask specific questions that focus in on your critical issues. Do not forget to ask about implementation and training, on-going support, custom software, and the overall attitude of the vendor's staff. All of these things are as important as the software itself. The most important question to ask: If you could do it all over again, what would you do differently?

As tempting as it is to request a proposal sooner, wait until this point in the process - when the vendors know you and your needs - to ensure that every module and option critical for your business is included. As you compare the proposals, look at the value each vendor provides. Focusing only on the price could result in disaster. The old adage, "You get what you pay for," has never been more appropriate then when purchasing software.

Once you've reviewed the proposals and selected the vendor that best meets your needs, but before you sign the contract, visit at least two of the vendor's customers. Select businesses that represent what you aspire to be in a few years. Remember, you are not just buying software for today, but for the future as well. Seeing the software solution in a live setting should confirm your decision to work with a particular vendor. If any concerns arise, give the vendor one chance to address the problem before scheduling site visits with the next vendor on your list.

When you are fully satisfied, it's time to start negotiating with the vendor. Of course you want to get the best price possible, but at the same time you need to realize that this is a long-term commitment and ultimately extra services or extended agreements may better serve your needs. Negotiate hard but fair to ensure you will get the greatest return on your investment.

If done correctly, the work you put into selecting your new enterprise software solution will pay huge dividends by giving your company a solution that increases sales, improves customer service, and reduces operating costs.

For more information on Activant's enterprise software solutions, please fill out our Web Contact Form.

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