Avoid Costly ERP Implementation Problems: Find the Right Vendor or Consultant

A global retailer once lost millions in sales when a poorly chosen ERP vendor botched their system implementation, disrupting order fulfillment for weeks. The wrong ERP vendor or consultant can derail your entire operation. It’s not just a minor inconvenience. The wrong partner often delivers overpriced, underwhelming solutions that don’t fit your needs. In fact, this is why 4 out of 5 ERP implementations are considered a failure.

The ERP industrial complex often puts their financial interests ahead of your success. Knowing what to look for can help you avoid a bad match. Start by learning how to evaluate systems integrators and find ERP solutions that support your business goals without compromise.

ERP as a Backbone for Modern Commerce?

ERP systems are marketed as essential for modern commerce, promising to unify operations and streamline workflows. But for many businesses, these promises often fail to materialize. Instead of delivering adaptability and efficiency, ERPs frequently create rigid workflows and introduce unexpected expenses.

Commerce businesses should scrutinize these claims. While ERPs position themselves as the answer to operational challenges, their inability to evolve with business needs often leads to frustration and inefficiency. Many companies end up stuck with systems that fail to deliver on their promises, forcing them to question whether the trade-offs were worth it.

Common Risks of Choosing the Wrong ERP Vendor

Inflexibility That Slows Growth

Some ERPs aren’t built to evolve with your business as it grows in both order volume and complexity. Their rigid structures make adapting to new needs nearly impossible. What starts as a promising solution often turns into an ongoing IT project, preventing your operations from evolving quickly.

Questions to ask:

• How do automated workflows get configured in the ERP? What does it look like to create new versions of those workflows?
• Which of our requirements are available out of the box? Which require customizations?
• What happens if our order volume quadruples suddenly?
• Why do companies like ours leave your product?

Hidden Costs That Hurt ROI

ERP quotes often hide the true costs. Additional fees for upgrades, new features, and integrations can pile up quickly, putting pressure on your ROI. Worse, implementing these features often requires expensive consultants, further escalating costs. For businesses managing tight budgets, these hidden costs can become untenable.

Questions to ask:

• What changes in the ERP are self-service? What can our team manage?
• How much of our needs require custom code? Is there a way to avoid this?
• What modules aren’t included in our current license? What will those cost?
• Why is x an extra cost? Can it be included?

Integration Challenges

An ERP’s tech partner ecosystem should be robust. But many vendors intentionally create closed ecosystems, charging extra for APIs or limiting integrations to approved partners. These restrictions reduce your options and trap you in their ecosystem.

Even when APIs are available, integrations can be slow and costly. Outdated ERP systems often require workarounds, increasing downtime and expenses while limiting innovation.

Questions to ask:

• What kind of APIs do you provide? Are they modern and well-documented?
• How do you onboard new tech partners? What costs or friction are involved?
• What would it take to integrate a best-of-breed solution that isn’t a partner?
• How quickly is your tech partner ecosystem growing? Why?

How the Wrong Consultant Can Derail ERP Implementation

The wrong ERP consultant can also erode the ROI for your ERP implementation. This section discusses how.

Misaligned Business Needs

Many consultants rely on “paint-by-numbers” templates instead of tailoring solutions to your business. This one-size-fits-all approach creates mismatches, wastes budgets, and leads to frustration.

Questions to ask:

• How much experience do you have with businesses like ours? Prove it.
• How much experience do you have implementing this ERP system?
• What’s your methodology for delivering projects? Why does it lead to success?
• How is your compensation tied to our outcomes, not just fixed fees?

Poor Balance of Technical and Business Expertise

ERP implementations require deep technical knowledge, but consultants also need to understand your business goals. Overly technical consultants may miss the big picture, while underqualified ones can make costly mistakes. The best consultants bridge this gap.

Questions to ask:

• What’s the skill set and seniority of the team assigned to our project?
• What roles will be staffed, and what are their responsibilities?
• How long have team members worked with your firm and the relevant technologies?

Delayed Timelines and Budget Overruns

Missed deadlines and budget overruns are common with poor project management. Scope creep and unrealistic estimates exacerbate the problem, leaving commerce companies to foot the bill.

Questions to ask:

• How do you plan and estimate projects like ours?
• How do you manage scope changes? How do you prevent cost surprises?
• How does the ERP vendor support your project delivery?

Mitigating Vendor and Consultant Risks

Avoiding these risks starts with careful planning and evaluation. Map out exactly what you need from an ERP or consultant—and hold them accountable to deliver it. Don’t settle for vague promises or cookie-cutter solutions.

Conduct a Needs Analysis

Understand what you need from an ERP. Identify operational bottlenecks and separate must-haves from nice-to-haves. A clear blueprint keeps vendors focused on your priorities.

Ask Hard Questions

Push vendors to provide proof. Demand tailored demonstrations and relevant case studies. Good vendors welcome scrutiny; bad ones dodge specifics.

Evaluate Backgrounds

Vet consultants thoroughly. Examine their experience with projects like yours and look for transparency around vendor relationships.

Understand the Vendor-Consultant Relationship

Your ERP’s success often depends on the relationship between your consultant and the vendor. Drill into this dynamic to ensure it aligns with your goals.

Prioritize Integrations

Integration should never be an afterthought. Ensure your ERP supports seamless connections with tools you already use and offers a growing partner ecosystem. Closed ecosystems exist for the vendor’s benefit, not yours.

Is ERP Even Necessary?

ERPs are marketed as all-in-one solutions, but they’re not always the best fit. For many midsize businesses, an ERP can be overkill. Specialized tools might address specific challenges more effectively and at a lower cost.

Integrating best-of-breed point solutions is a viable alternative. These tools excel in their respective areas—like inventory management or financial reporting—and can be connected into a cohesive system. Modern integration technology makes this approach practical, enabling businesses to build a tech stack that adapts to their needs without the rigid limitations of an ERP.

Conclusion

Choosing the right technology for your business isn’t just about finding a solution that works today—it’s about setting yourself up for long-term success. The wrong ERP vendor or consultant can create more problems than they solve, locking you into rigid systems, draining your budget with hidden costs, and limiting your ability to innovate.

By asking tough questions, conducting a thorough needs analysis, and exploring viable alternatives like best-of-breed point solutions, you can avoid these pitfalls. Integration no longer has to mean compromise. It’s possible to build a tech stack that supports your growth without forcing your business into an ill-fitting mold.

Take the time to evaluate your options carefully, and don’t be afraid to challenge the status quo. Your business deserves solutions that work with you, not against you.

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