Enterprise resource planning (ERP) system can manage your business’s day to day activities, but how much does it cost? And what budget should you be looking to get one?

However, the cost of an ERP system in Singapore varies significantly due to the complexities involved in the development process. Enterprise systems have many modules and factors that affect their prices.

In this article, you’ll find out more about the prices of enterprise resource planning systems and how much it can cost in Singapore; read on to know more.

As you can see the ranges, they’re not specific, and you need an ERP consultant to get the right price for your business scale.

According to a report by softwarepath, the budget per user for an ERP project is around $9,000 when averaged. But this figure varies on the number of functions, roles, modules, and complexities. So the general rule of an ERP system costing is ‘the larger your company, the more costly the ERP system will be.’

On the other hand, a larger business company will have more functions, more users, and more business-process needs. For that, a customizable and cloud-based ERP system suits better, and the costs might become appropriate too.

Custom-made ERP solutions cost around $45,000 to $250,000 depending on a wide variety of features needed by a company. The customized ERP software is developed to cater to enterprises' specific needs, and the costs vary for the business size.

Custom-made software is designed according to your company’s requirements and experiences. Customized ERP systems can help more in day-to-day business operations for all business scales in reality.

There is absolutely no business without complexities, and each company follows its specific procedures, techniques, and operations. You need the right management software as a business-intelligence model to automate your work as much as possible.

Let’s go one step ahead and talk about why resource planning software costs fluctuate too much.

These aspects will decide the total cost of ownership of an ERP system. The miscellaneous things that can affect an ERP cost are country, type of business, business scale, etc.

Let’s discuss them a bit.

Hardware

The costs of hardware are included in the ERP implementation phase. ERP software is quite complicated and needs suitable hardware to support it. For that, you might need changes for servers, operating systems, hardware, and whatever hinders in the way of ERP system performance. Whether you own a SaaS or eCommerce solution, the right hardware will run your business in a streamline.

Customization

According to your business needs, customization is inevitable for ERP applications. Be it supply chain management, warehouse management, process management, relationship management, or financial management software, the number of users, analytics tracking, inventory management, and other features affect the costing and price structure for an ERP cloud.

Licensing Costs

ERP licensing costs depend on the number of users accessing the system and on other ERP modules. Since the licenses are bought separately, the licensing fee will not be included in your ERP implementation procedure. Your ERP's license renewal fee will be somewhere 10% to 20% of the ERP software’s total cost, so if your ERP software costs $200,000, the license renewal fees will be somewhere between $20,000 and $40,000.

Staff Training

Most of your employees might not be ready to face the complex nature of ERP systems. Therefore, some of your budgets will be used on training staff to properly use the tools and make the most out of the ERP system. If the users need more time and training, vendors may charge additional hourly fees to continue training.

Maintenance

ERP systems need certain areas to maintain in order to keep them working smoothly. Most of the IT components will require maintenance like hardware, networking systems, etc. The additional labor cost for repairing and maintaining the systems will incur too. You might want to target around 15% to 20% of the total cost of ERP software for maintenance charges.

Upgrades

To keep your business aligned with the current technological trends, upgrades necessary for ERP systems. The costs of upgrading systems are subjected to depend on what technical updates are installed. These upgrades might affect the way your business operations work, the hardware, and the network.

Consultancy

Most in-house members aren’t savvy to the ERP and CRM systems. Therefore, hiring an ERP consultant for a few bucks is better than ending up with the wrong business software. An ERP consultant's charges will be based on hourly rates, and professional ERP consultants will be available for a range of $140 to $180 per hour.

Conclusion

ERP systems packages can be justified based on features offered, profitability, and problems they solve. But you need the right ERP vendors to provide you with a customizable solution for the business requirements.

If you need more information regarding affordable ERP plans for your business, please feel free to contact us.