July 11, 2005
Volume 1 Issue 19       

How to Avoid an Expensive Software Decision 

Imagine going out to buy a car without any idea of how you are going to use it, your price threshold or what your long term plans are for the car. This seems to be the common approach taken by most food distributors in choosing a system for their business. Now for you smaller distributors the title might have you think “I’m not spending 6 figures for a system in my life time, well don’t fool yourself. After all is said is done even a $25,000 initial investment can easily turn into $75K to 80K after you analyze the total cost of implementation.

In this issue we will focus on the steps you can go through before and during the selection process so you can not under spend or over spend on your system selection.

The software selection process.

1. Before you start looking, identify every manual process, form and report that runs through your office.

2. List procedures necessary for people to do their work.

3. Examine both points above from the perspective of how they add value to my customers? This examination should help you eliminate steps before you even select a system.

Brainstorm your wish list.

1. Leave the office with your key staff and have an off site meeting. Make it a  “blue sky” meeting about the perfect system. Some of these may be available with little additional investment.

2. Prioritize your ideas and procedures into the following groups
• Absolutes
• Wanted
• Wish list

Now that you’ve accomplished that its time to start your search. Here is the part that seems difficult to most non

Information technology people. Again there are some very simple guidelines to help you along.

Ø       This isn’t about technology this is about your business, your planning before hand will assist you in keeping those issues separated. No one should know how to run your business better than you.

Ø       Functionality to run your business is more important than the lowest price.

Ø       Reduce the number of solutions investigated to 3 and quickly to 2.. Ever go look at 5 cars. Unless that’s your hobby Good Luck !

Ø       See the software in action through demos or site visits.

Ø       References. References, References. Don’t just ask how do they like the system, ask how difficult it was to implement. Would they do it over again. Hard questions before investing cost nothing.

Making the decision

Ø       Try to make it a group decision so the group takes ownership. This will aid significantly in the deployment of the system.  The group will strive to show their decision was right.

Ø       Treat the system as a payroll cost, even a $100,000 system will cost $2,000 a month significantly less than a valued administrative employee.

Ø       Dedicate the resources to install. An asset not used is a liability.

Follow these simple steps and save big $’s

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