In today’s technology world, ERP contract negotiations are extremely important. This is partly because ERP software prices are still very complex. Due to our over 300 engagements, Ultra Consultants has the experience to assist you in finding the best ERP software at the best price.
How to Navigate Through Your Contract Negotiations
Early in our projects, we help our clients establish the correct budget for business process improvement, or enterprise software selection and implementation. During each project, we help our clients evaluate ERP vendor proposals. Towards the end of the project, we assist in the negotiating phase by:
- Comparing bids
- Establishing a negotiation team
- Establishing a negotiation target and strategy
- Assisting with contract review
- Assisting with negotiations
There are multiple items in an ERP contract that need to be negotiated. This includes:
- Software price and contract
- Annual maintenance price and contract
- Enterprise software implementation vendor professional services price and agreement
- Implementation of vendor’s statement of work
Our services ensure your organization is not overpaying for your software, is buying the right software components, and that you are hiring an implementation team that can be successful. Our contract guidance supplements your legal counsel to make sure you are protected in the arrangement with your new ERP partner.
6 Guidelines for Effective ERP Contract Negotiations
- Timing is everything. It is essential you understand the year-end and quarter-end dates for the final vendors.
- Make sure you have two finalists to enhance your leverage.
- Understand there are multiple points to discuss and negotiate in the final contracts, and that it would be wise to engage a trusted advisor to guide you through the maze of possibilities.
- Understand all the costs – including hardware, database and middleware software, etc. – prior to making any decisions.
- Have a final legal review prior to executing contracts.
- Establish point-to-point person(s) for the contract negotiations and instruct other team members not to discuss any details with any of the vendors.
Effective Contract Negotiations for Faster ROI
Finalizing an agreement with your selected ERP software vendor can be a challenging proposition, although it’s one of the key tasks during ERP selection. Most of our clients have not structured or negotiated an agreement of this type in quite a while or ever before.
Leading companies have found that teaming with Ultra makes all the difference in their success. You can rely on Ultra’s expert insight to help manage the expansive scope, strategic importance, and range of options during ERP contract negotiations.
By working with Ultra, you will have the confidence you’ll need to succeed in working through the magnitude and complexity of these agreements. Our enterprise software selection team understands the totality of all the components and has a full understanding of the flexibility the respective vendors have in structuring the final agreement.
Over 300 companies have contacted Ultra Consultants for this guidance. Please contact us today to discuss how we might be able to guide you through the ERP selection process.