Evaluation Criteria of ERP Systems

1 Cost-Related
1.1 Total implementation cost
1.2 Regular maintenance cost
1.3 Consultancy cost
1.4 Infrastructure cost
1.5 Training cost
1.6 Cost of customizations

2 Implementation Time
2.1 Implementation time

3 Vendor-Related
3.1 Vendor’s reputation
3.2 Vendor’s scale
3.3 Vendor’s financial condition
3.4 Vendor’s market share
3.5 Vendor’s industrial background
3.6 Vendor’s after-sales support & training
3.7 Vendor’s maintenance

4 User-Related
4.1 Flexibility of customization
4.2 Is the system user-friendly?
4.3 Ease of operation
4.4 Ease of learning

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5 Technology-Related
5.1 System scalability
5.2 Technology robust enough to handle current & future transaction load
5.3 System’s speed acceptable for daily usage
5.4 Flexible options of servers
5.5 Flexible options of databases
5.6 Support of barcoding
5.7 Support of multi-currency
5.8 Support of multi- language
5.9 Integration of legacy systems
5.10 Support of cloud services
5.11 Security level for the data provided by cloud services
5.12 Cloud ERP system response time
5.13 Flexibility to switch from cloud-based ERP to in-house
5.14 Cloud-based ERP system can integrate with the other line of business applications
5.15 Support of recoverability

6 System-Related
6.1 Does the package meet the overall requirements listing
6.2 System reliability
6.3 The level of security provided
6.4 Function correctness
6.5 System’s function fitness
6.6 User-supportiveness provided by the help files
6.7 Ease of access to reports
6.8 Reporting and analysis features
6.9 Data export capability
6.10 Customizable reports capability
6.11 Flexibility of adding new modules in the future
6.12 Ability for scheduling auto-backups

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7 Finance Module
7.1 Finance module supports general ledger?
7.2 Finance module supports accounts receivable?
7.3 Finance module supports accounts payable?
7.4 Finance module supports asset management?
7.5 Finance module supports analytical accounting?
7.6 Finance module supports bank interfaces?
7.7 Finance module supports trial balance report?
7.8 Finance module supports profit & loss report?
7.9 Finance module supports balance sheet report?
7.10 Finance module supports expense analysis report?
7.11 Finance module supports budget analysis report?
7.12 Finance module supports cash/bank fund position report?
7.13 Finance module supports cash flow report?
7.14 Finance module supports general ledger consolidation?
7.15 Finance module supports general ledger security?

8 HR Module
8.1 HR module supports Payroll?
8.2 HR module supports Employment History?
8.3 HR module supports Career Management?
8.4 HR module supports Talent Management?
8.5 HR module supports Benefits Management?

9 Inventory Management Module

9.1 Inventory management module supports Inventory Requisition?
9.2 Inventory management module supports Inventory Order Assessment?
9.3 Inventory management module supports Asset Tracking?
9.4 Inventory management module supports Order Management?
9.5 Inventory management module supports Service Management?

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10 Quality Management Module
10.1 Quality management module supports quality planning?
10.2 Quality management module supports quality inspection?
10.3 Quality management module supports quality certificates?
10.4 Quality management module supports quality notifications?
10.5 Quality management module supports quality control?

11 Purchase Management Module

11.1 Purchase management module provides detailed supplier/subcontractor/service
provider database?
11.2 Purchase management module provides automatic firing of purchase requisitions
based on MRS (Market Research Society)?
11.3 Purchase management module provides recording payment terms in PO (Purchase
Order)?
11.4 Purchase management module provides PO amendments with complete amendment
history?
11.5 Purchase management module provides vendor evaluation based on quality, price &
delivery time?
11.6 Purchase management module provides purchase order processing?
11.7 Purchase management module provides purchase order entry with item details and
order details like taxes, discounts or extra charges?
11.8 Purchase management module provides flexibility to generate purchase order in
domestic and foreign currency?
11.9 Purchase management module provides purchase bill with updating of GL (General
Ledger) and purchase book?
11.10 Purchase management module provides reports for order tracking for complete
control on the procurement cycle?

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12 Sales Management Module
12.1 Sales management module handles pre-sales and sales activities of the organization?
12.2 Sales management module provides detailed competitor products information
location-wise?
12.3 Sales management module order amendment history?
12.4 Sales management module provides order scheduling over a period of time and
tracking delivery schedule?
12.5 Sales management module supports order tracking through status and transaction
reports?
12.6 Sales management module generates production advice to plan for production based
on sales orders?
12.7 Sales management module supports tracking sales returns?
12.8 Sales management module provides flexibility to define customer-specific prices for
products?
12.9 Sales management module supports multi-dispatch locations for customers/dealers?
12.10 Sales management module provides different types of orders that can be generated
to suit varied needs of customers?
12.11 Sales management module provides order calculation based on price offered,
discounts (line and total), excise, taxes, freight etc.?
12.12 Sales management module supports stock transfer between warehouses for multi-
location companies?
12.13 Sales management module provides credit management?
12.14 Sales management module monitors payments and receipts?
12.15 Sales management module supports electronic payments of customers?

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 13 Production Planning Module
13.1 Production planning module provides process definition with inputs, outputs, by-
products and overheads?
13.2 Production planning module provides definition of bill of material for all products
up to any number of levels?
13.3 Production planning module provides planning based on customer-wise production
advice and sales forecast?
13.4 Production planning module provides MRP (Material Resource Planning)?
13.5 Production planning module provides production plan for machines with optimum
utilization of all available resources like raw materials and machines?
13.6 Production planning module supports options to revoke production plan to change
input parameters / production priority / quantity using fresh production advice?
13.7 Production planning module can generate master production schedule for machines
during detailing inputs and outputs?
13.8 Production planning module provides analysis of machine efficiency and
utilization?
13.9 Production planning module can generate purchase requisitions on finalization of
plan?
13.10 Production planning module can automatically generate job orders for production?
13.11 Production planning module supports options to make daily plans for production?
13.12 Production planning module can monitor production phase-wise for every unit?
13.13 Production planning module provides daily production and dispatch reports?
13.14 Production planning module can monitor standard vs. actual consumption?

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 14 CRM Module
14.1 CRM module provides contact management?
14.2 CRM module tracks customers’ needs and maintains a complete history of
customer-related interaction?
14.3 CRM module provides sales automation?
14.4 CRM-sales automation sub-module provides territory management?
14.5 CRM-sales automation sub-module includes automated workflow processing,
activity management and automated reminders, and sales call tracking and
reporting?
14.6 CRM-sales automation sub-module provides lead management and opportunity
tracking across the entire sales pipeline?
14.7 CRM-sales automation sub-module supports online quoting and proposal
management?
14.8 CRM-sales automation sub-module tracks competitor data for competitive bid
analysis?
14.9 CRM-sales automation sub-module provides revenue forecasting?
14.10 CRM module provides sales commission management?
14.11 CRM-commission management sub-module allows comprehensive commission
structures based on sales revenue, margin, and quota attainment?
14.12 CRM-commission management sub-module supports that split commission can be
calculated at multiple levels of sales activity?
14.13 CRM-commission management sub-module enables that commission overrides can
be defined by customers, products, sales types, or in combination?
14.14 CRM-commission management sub-module supports online visibility of
commissions and quota attainment by sales representatives and managers?
14.15 CRM module provides marketing management?
14.16 CRM marketing management sub-module allows definition of a multi- level
hierarchy for prospects and customers for groups or segmentation?
14.17 CRM marketing management sub-module supports customer and prospect buying
preferences, interests, and other relevant demographic data?
14.18 CRM marketing management sub-module supports creation and tracking of
marketing campaigns with contact-specific flags for campaign inclusion?
14.19 CRM marketing management sub-module supports sending of mass emails to
prospects and customers based on buying preferences and customer demographics?
14.20 CRM marketing management sub-module supports importing of external contact
databases and lists?
14.21 CRM module provides service management?
14.22 CRM-service management sub-module supports creation of an issue, assignment to
personnel, and documentation of resolution?
14.23 CRM-service management sub-module supports issue date and timestamps for
opening and closing to calculate elapsed time to resolution?
14.24 CRM-service management sub-module allows entry of issue categories and
prioritization?
14.25 CRM-service management sub-module supports product serial number and warranty
or maintenance tracking?
14.26 CRM-service management sub-module supports associated generation of a product
return?

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15 E-Commerce
15.1 E-commerce module supports B2B and B2C transactions via integrated shopping
cart?
15.2 E-commerce module provides secure online access for employees, consumers,
dealers and suppliers?
15.3 E-commerce module supports product inquiries, pricing, purchases, and transaction
history?
15.4 E-commerce module can integrate with an existing website?
15.5 E-commerce module supports automated requests for proposal distribution, supplier
responses and award notification?

16 Project Management Module

16.1 Project management & planning module supports breakdown of projects by phases,
steps and tasks?
16.2 Project management & planning module supports tracking of purchased items and
expenses, material, labor, and burden costs, and non-manufacturing-related employee
time and expenses?
16.3 Project management & planning module allows sales orders and purchase orders to
be associated with a project?
16.4 Project management & planning module can track customer invoices and vendor
payments made to a given project?
16.5 Project management & planning module can track project budget versus actual?

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 17 Business Intelligence Module
17.1 Business intelligence module provides analytics features and functions?
17.2 Business intelligence module provides predictive analysis?
17.3 Business intelligence module provides data, text and web mining?
17.4 Business intelligence module provides sales and marketing analysis?
17.5 Business intelligence module provides human resources analytics?
17.6 Business intelligence module provides operations and inventory analytics?
17.7 Business intelligence module provides data warehousing features and functions?
17.8 Data warehousing functions supports real-time and batch execution?
17.9 Data warehousing integrates data from OLAP?
17.10 Data warehousing integrates data from legacy system data?
17.11 Data warehousing integrates data from web sources?
17.12 Data warehousing functions provides data transformatio n and cleansing tools?
17.13 Data warehousing functions provides data compressing capability?
17.14 Data warehousing provides capturing and supplying incremental changes from
target data sources to the data warehouse automatically?
17.15 Data warehousing functions provides tailoring size of blocks?
17.16 Business intelligence provides ad-hoc reporting?
17.17 Business intelligence module provides data visualization tools?

Reference:

Hegazy, A. E. F. A., ElBattah, M., & Kadry, M. (2012, October). Fuzzy-Based Framework for Enterprise
Resource Planning System Selection. In Proceedings of the 22nd International Conference on
Computer Theory and Applications (ICCTA), (pp. 139-147). IEEE.

https://ieeexplore.ieee.org/document/6523560/