What are the upfront costs and ongoing expenses?
Payment structures vary among inventory planning software providers. Some charge a large upfront fee and have minimal ongoing expenses, while others have a lower upfront fee but the contractual obligation is larger. Part of the payment structure is determined by the software company the provider works with, and part is determined by the provider. Before signing on the dotted line with any provider, make sure you know exactly what fees you will be paying, when you will be paying them, and for how long the contract lasts.
What training do you provide?
Any time a major new software system is implemented, whether it is a comprehensive enterprise resource planning (ERP) program or a more specific inventory planning application, your employees will need to learn how to use the new system. If they are not properly trained, you will never realize the return on investment (ROI) that you could if they had been properly trained. Training may be done by your own staff, the software provider, or a third party. Who trains your employees is not important (as long as they are qualified), but you should know whether the provider will do this or if you must find training from someone else.
What other services do you provide?
Even if your business is not ready for a full-fledged ERP program now, it may (and hopefully will) be one day. Your inventory planning software provider should also be able to take care of your ERP needs. After all, inventory planning is just one aspect of any ERP program, and it is only one way a software system can help your business’ bottom line improve.
What security measures will be in place?
In most cases, inventory planning software providers do not take care of a business’ security needs. IT security is either managed in-house or outsourced to another provider, one that specializes in security. Nevertheless, you should ask your inventory planning software provider what security measures their solution affords. Does the software automatically encrypt data? What different user levels are available, and can the security settings on each be customized? Who has access to passwords? All of these are important questions, because your business will be held responsible for any security breach.
You will need to consider many other factors before settling on one inventory management software provider, but these questions will help you make the decision. They largely do not take into account the costs of such a software system, but assume that the ROI calculations have already been made, and investing in such a system will help your business. One last point to consider is proximity. Whether you are looking for support, training, or project management, your software provider should ideally be easily accessible or nearby. These questions should help you get a general idea of what to consider when choosing an inventory planning software provider.