As mentioned in my previous post, I was recently interviewed by Alexandra Tambellini of Capterra. Her now published post – Know Thy Warehouse – very nicely sums up some key considerations that many people neglect before starting the look into new or improved wholesale distribution software.

As a corollary, I should point out that you also need to be realistic and pragmatic in what is in fact achievable within your budget. Which brings us to a crunch question: how do you determine your budget? I find that many companies seem to start off with an arbitrary budget, based on what they feel they should spend – without using any real world frame of reference. Such companies sometimes end up spending, say, $20,000 on a system that doesn’t really work for them, because that was their budget based on a preconceived notion; whereas a $40,000 system would have provided a terrific solution and a springboard to growth and profitability.

There must be a better way to establish a budget for a new system.  I’ll be examining this over the next few weeks on this blog, but first you tell me your opinion:

How do you determine what your budget should be?

Read more about the cost of inventory management.

ERP Software Pricing Guide