ERP Vendor vs ERP Partner: What’s the Difference?

To run your business more efficiently, you have now decided to relocate the enterprise resource planning system to the cloud. While performing research, you must have found that this upgrading will boost money- and time-saving automation in HR, supply chain, finance, workforce management procurement, and more. But with so many options available, deciding on the right ERP software can be a task. And once you’ve made your choice, you’re faced with another crucial decision: should you work directly with the ERP vendor or engage an ERP partner?

Let’s break it down for you: An ERP partner stands as a third party between you and the vendor, helping you maximize and implement the use of the system you selected. However, an ERP vendor maintains and creates the software and even works with your organization to implement it.

Here’s what we’ll cover in this article:

• The Role of an ERP Vendor
• Working With the ERP Vendor Directly
• The Role of an ERP Partner
• Working With an ERP Partner
• What Do ERP Partners and ERP Vendors Offer?
• Difference Between ERP Vendor vs ERP Partner
• ERP Vendor vs ERP Partner: Who Should You Work With?
• Enjoy a Seamless ERP Implementation With Onboard
• Common Questions on ERP Partner vs ERP Vendor

The Role of an ERP Vendor

ERP vendors are responsible for creating, publishing, and updating the ERP software you select. They offer support for ongoing product development, such as bug fixes, new features, and more. They even look after the new versions and new features of the selected software.

For instance, Microsoft is an example of an ERP vendor. They offer ERP solutions with a wide product range and opportunities for customers to connect with them directly. Learn more about our Microsoft Dynamics 365 Training Training.

Working With the ERP Vendor Directly

Whether the ERP project is about implementing a new application suite, migrating your complete system to the cloud from on-premise or editing ERPs together, how you proceed with the engagement is what makes all the difference.

Connecting directly with an ERP vendor is the logical thing to do. They are the only business to deal with ERP implementation for your organization. The ERP vendors are well-acknowledged about the required products and have the right resources to deal with different issues that may occur.

Moreover, ERP vendors have a good record of implementing software successfully for different types of clients. Hence, you have a transactional business with your ERP vendor. They sell you software and set up its functioning with the customization possible. Even though an ERP vendor can be your one-stop solution for the software, they do not have experience serving different units of businesses.

The Role of an ERP Partner

An ERP partner exists as a third-party vendor suggesting the ERP software according to your business requirements and also takes hold for smooth implementation. They offer services that won’t be accessible in packages or from an ERP vendor.

An ERP partner works in collaboration with your business to ensure you have selected the most appropriate ERP software for your business. They look after the learning process and offer support and aftercare after the implementation is done for end users who are the day-to-day users of the system. They purely support the planning (ERP training plan), development (of training materials) and delivery (training course classroom delivery) of ERP training programs.

Working With an ERP Partner

An ERP partner offers more than just a transactional business that you create with an ERP vendor. Even though they do not make the software, they help your company in making the best out of it.

Moreover, their relationship with your business expands beyond only the implementation. They offer you support with a dedicated representative, project manager, and a team of experts to fulfill your requirements and handle challenges in regard to the type of your business. Hence, they become an extension of your internal team.

When selecting an ERP partner for your business, crosscheck their expertise. An ideal ERP partner can offer support and training on new migrations and implementation from existing on-premise systems, expansions, technical assessment, optimization, integrations, custom development, and more.

Find out more about our solutions including Post ERP Go-Live Support.

What Do ERP Partners and ERP Vendors Offer?

One major benefit that you explore when working with an ERP vendor is that you need to manage only one relationship. Your connection with the ERP vendor is direct, and their dedicated support team is well aware, informed, and equipped with the intricacies, the workings of the product, and the requirements of your business process.

Another major advantage that vendor implementation provides is a detailed understanding of your business requirements and the offering of specialized services that meet your needs.

However, a well-working ERP partner also brings along multiple benefits. For instance, if your business is located in New York, and the software vendor you have selected is based outside that location, you can go for ERP partner implementation and stay on board with a locally-based expert partner. This will offer you great personalized attention and better training support for your end users. 

In addition, an ERP partner stands as a bridge between your chosen ERP vendor and providers of a third-party solution you select to integrate. They can assist you with personalization to the selected ERP system and will stick around with you for longer terms and help you get the most out of your ERP solution.

Difference Between ERP Vendor vs ERP Partner

Learn the key differences between the ERP Vendor vs. ERP partner by referring to the table given below:

ERP Vendor vs ERP Partner: Who Should You Work With?

Both ERP partners and ERP vendors come with their own set of benefits. Several businesses that prefer well-tailored training programs according to their requirements and want long-term assistance and collaboration with the ERP adoption and usage prefer working with an ERP partner. However, businesses that do not have much-tailored software learning requirements and simply want to fulfill software implementation connect with ERP vendors. However, some major reasons why most businesses prefer collaborating with an ERP partner, apart from a vendor, are as follows:

• You get to leverage their experience and expertise: An ERP partner takes a carefully analyzed and calculated approach, acknowledging all your requirements before implementing and customizing the ERP solution. They are experts in ERP with the desired experience and know-how, as well as a detailed understanding of the chosen ERP solution that you want to leverage. With their years of experience as ERP partners working in collaboration with other companies, you can benefit from the best ERP practices for process efficiency and enhanced productivity.
• They can help you address gaps in the selected ERP software: Whichever ERP solution you select for your business, the software may come with certain gaps in functioning. Here, your ERP partner understands the process of your business and addresses the drawbacks in the software, whether that is through a custom workaround or a third-party app.
• They offer you long-term collaboration: A good ERP partner stays with you for a long time even after the support time they offer to your businesses, and also helps you get the maximum benefits from the chosen ERP solution. As your ERP solution becomes the powerhouse of your business, this kind of partnership and assistance is essential for long-term success.

It is essential to collaborate with an ERP software vendor that offers you amazing partnerships and understands your requirements. But an ERP partner shares with you the mutual aim of boosting the growth of your business, providing impartial solutions and advice that align with your business and working with you all the way till you achieve your goal.

Enjoy a Seamless ERP Implementation With Onboard

Apart from the factors discussed above, there are many other crucial factors, such as future, scalability, technology, budget, and the timeframe of the ERP implementation, that you must consider before making the final selection for your business. Go for an ERP vendor or an ERP partner who aligns with your framework of requirements after discussing each and every detail.

To help you with seamless ERP implementation, Onboard helps all businesses around the world grow and thrive. Onboard offers an immense commitment to assisting organizations in achieving their goals and enhancing their ROI with constant assistance with their customized ERP training plans. Contact now for details!

Common Questions on ERP Partner vs ERP Vendor

Q1. Mention the two types of ERP vendors.

ERP vendors are classified into two groups on the basis of the size of the company they work for. They are classified as vertical vendors and horizontal vendors. Horizontal vendors provide solutions for many industries. However, vertical vendors provide a complete solution for specific industries only.

Q2. How do you select an ERP vendor?

To select an ERP vendor, consider the following points:

• Define your business needs
• Define vendor selection criteria
• Check vendor expertise and experience
• Evaluate system customization on flexibility
• Review vendor training and support

Q3. Describe the rule of five ERP.

ERP project costs = 5% of the entire revenue. The cost of an ERP project is five times the cost of your software license.

Q4. Mention the golden rules of ERP.

Some major rules for ERP implementation include:

• User training and effective change management are crucial.
• Have an integrated and solid project plan at the people level so that everyone understands the responsibilities.
• Make timely decisions and work according to critical path delivery dates.

Q5. Discuss the 5 pillars of ERP.

The 5 pillars of ERP are as follows:

• Proper strategy and planning
• Strong adoption, project management, and change management
• Clear communication and engagement between stakeholders
• Data integration and migration
• Quality assurance and continuous testing

Q6. What do you understand about ERP strategies?

An ERP strategy ensures that the right players have a place at the table and that business requirements are well understood. This helps in reducing rework investment.

Q7. What do you mean by ERP units?

ERP units mean preferred or common membership or partnership interest in any subsidiary of ERP or ERP, which is taxed as a partnership for federal income tax.

Q8. What do you understand by ERP code?

Enterprise resource planning is a kind of software system that assists organizations in managing and automating core business processes for best performance.

Q9. Explain ERP verification.

The process of ERP verification includes systematic documentation and verification of an ERP system, aligning with redefined requirements, industry best practices and regulatory standards.

Q10. Mention the seven stages of ERP implementation.

Seven crucial steps for ERP implementation are as follows:

• Discovering internal matters
• Choosing the system
• Designing the system
• Installation
• Testing
• Deployment
• Continuous feedback and enhancements