JPJustin Pennington
All posts

Picking the Right ERP for a Growing Company

The ERP market is overwhelming. Here is a framework for choosing a system that fits where you are and where you are going.


The ERP market has hundreds of options. Enterprise suites from SAP and Oracle. Mid-market platforms from Acumatica, NetSuite, and Sage. Industry-specific solutions for manufacturing, distribution, construction, and services. Choosing the wrong one wastes a year and a budget. Choosing the right one compounds for a decade.

Start With Your Constraints

Before you look at any software, define your constraints. What is your budget, including implementation and the first three years of licensing? How many users will be in the system daily? What industry-specific requirements do you have — lot tracking, job costing, project billing, multi-location inventory? Your constraints eliminate eighty percent of the market before you see a single demo.

The Demo Trap

Demos are designed to make software look good. Every vendor will show you the happy path. The question you should ask during a demo is: show me what happens when something goes wrong. Show me a return on a partially shipped order. Show me a credit memo that applies to multiple invoices. Show me what the user sees when they make a mistake.

Implementation Partner Matters More Than Software

A mediocre ERP implemented well will outperform a great ERP implemented poorly. The implementation partner — the people who configure it, migrate your data, train your team, and support you after go-live — is the variable that determines success. Ask for references. Call them. Ask what went wrong.

The Growth Question

Pick a system that fits where you will be in three to five years, not where you are today. If you are a ten-person company growing to fifty, the system you need at fifty is different from the one that is perfect at ten. A little room to grow is worth the marginal cost increase.