The first step toward getting ERP software development is triggered by the need of automating most of your processes. Automation has changed the world around us. Almost every industry is moving their internal and external processes to a technology-driven solution so that they can increase their procedural efficiency and also have the data to analyze and make a more sustainable business model.

The same goes for enterprise resource planning software that makes resource management easy and automated. But it is not just that, if we see closely, a lot of companies have vouched for enterprise resource systems as an efficient and dependable way to reduce waste and gain more profit. There are so many advantages of working with ERP. But, is the ready-made solutions available on the market the right fit for your company? If not, you need to find one agency from the top custom software development companies to develop ERP from scratch.

How to determine if you need a custom ERP solution?

Having a tailored solution for your company is an endeavor altogether. But to find the same degree of customization in a ready-made solution is almost impossible. A solution that does not serve your need is nothing but a bad investment in growth. So here are some points to help you know when to start your search for software development agencies for custom-built ERP systems.

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1. Changes in existing management structure: Different companies have different management structures and business processes. If the ERP solution requires you to change, it’s the first red flag to not go for it.
2. Lacking in functionality and interface elements: If the system is not offering you extra functions and interface elements are missing out, start considering a custom-built solution. You can start by listing out the new tools that are needed in your system.
3. Important Features: If the ERP system lacks in any tasks, fails in providing you analytics, doesn’t allow you to designate roles in the system or is not secure enough.
4. Expensive yet not efficient: Even a cheap ERP system that is not serving the right purpose becomes a burden for your company. It is not necessary that a cheap ERP lacks the potential, even an expensive one might not be the right fit for you and become a financial burden for your company.

Factors that are important in determining the cost of development

ERP is a complex software solution that serves as a single point from where you can control different processes of your business and has a common database to store all the information. It is a necessity that an ERP system has a user-friendly interface so as to maintain an easy flow in work and broaden the functionality for maxed usage. But the cost of developing such software can vary on the diversity of processes you are wanting the system to serve. The price, in this case, can vary and requires you to plan, develop, test and implement them well within your current system.

Here are a few points that will help you sort out the things that are necessarily required in an ERP system.

Important features and functionality needed in an ERP system

1. Human Resource Management:

The human resource management system allows you to automate and make your laborious, process-intensive human resource management task easier. It will allow you to customize the ERP system for different divisions and departments of the organization, but security and access requirements on the data available on the system, track their login times, project information, and much more.

2. Inventory Management:

As the name suggests it helps you maintain your business inventory at different levels. It stabilizes one of the most difficult works and allows you quickly track every product that arrives or goes out of your warehouse. It improves your customer experience and also makes the system more efficient. Also, it allows your employees to track down information about the product at different levels of the system.

3. Customer Relation Management:

Top Java companies, aces of ERP development have voted customer relationship management system as an essential part of ERP system. It helps you in improving your relations with the end-users. It allows you to peek into the needs of your customers and improve user scenarios, increase loyalty and boost your sales. CRM module is not just something you ignore; it is a necessity. And it is essential for small to medium to even large companies.

4. Sales and marketing:

This goes hand in hand with CRM modules, it helps you manage your export and local projects plus also allows you to automate your orders, sales, and invoice and monitors other parts of marketing.

5. Production:

A set of functions and tools allows you to improve planning for production. How it does do that? It automates your order management and gives you close to perfect analytical study on the upcoming demands so that you can pre-plan your production. It not just gives you the opportunity to leverage growing demands, but can also save you from losses.

Cost Estimation for developing ERP module

Once you have sorted out what you need in your ERP system, now it’s time you take the project proposal to the developers. You will find expert java development companies online that are worth giving a shot at. But it’s always better to know what you can expect on the price front.

The process of estimating the cost of development for an ERP system is quite similar to that of developing web applications. It involves,

1. Number of developers you have hired for the project
2. Number of hours developers will be investing in the project
3. And multiplying this all with their hourly rate

In general, a good ERP software development company will offer you development, testing, and maintenance.

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Cost of implementing an ERP system

1. APIs

Implementing an ERP system means commenting on the system. Connecting modules will require the developers to create APIs to connect modules which are usually done in four different steps.

1. Exploration of data structure and establishing a communication protocol between each module.
2. API Prototyping
3. API Development
4. and finally, API documentation.

Note:

For the implementation work, you will require to hire API developers, you can hire them from the company that has done the development work. Again, it will require you to calculate their cost.

2. Migration and Data Verification

If you had an old ERP in place, it is required to extract the data to convert it into the desired format and load it into your new efficient system. You have to hire a DBA specialist and ETL expert.

3. Testing

Now that everything is done, what remains is testing. Generally, a five-module ERP system requires two testers, that will use different tools and technology methods to test the software and look for any bugs, or security problems and pass on the information to the developers to put it right before deployment and training. Once you have the system in your hand, some of the companies may ask you to pay an expert who will work with you for one month to help you adapt to the new system.

4. Maintenance

Companies provide free maintenance for a particular period of time. Once you are in talks with the companies, you can negotiate that period. After exhausting that period, you are required to renew the maintenance account, and it’s all done.

Conclusion

Now that you are well aware of both the essential features you require in your ERP system, and also the places at which you are required to pay the software development company for the development, implementation, and maintenance of it, it is a cakewalk for you to determine the cost of the best ERP software development. Plus, consider the companies to which you can outsource the development work. Usually, Asian countries have a cheaper development costs than the US and UK.