It really wasn’t that long ago that many shops operated without computers and software. Isn’t it incredible how times have changed? Think about all the screens you now see on the shop floor in modern manufacturing facilities! You could argue that it’d be impossible to run a profitable shop in 2024 without these critical tools, though I’m sure there are probably some stragglers out there trying to eke out an existence without them (let’s applaud their fierce resolve to stay analog!). Just as these timeless lyrics from the 1960’s suggest, change cometh for all – learn to adapt!
“And you better start swimmin’
Or you’ll sink like a stone
For the times they are a-changin’”
-Bob Dylan
Let’s be honest though, the changes in software technology haven’t always been easy to manage. Back in the day, you could just buy (and own) the software outright, not unlike other tools you purchase for the shop. You’d install and maintain it on your own hardware, and you were all set!
As the technological development curve steepened with time, OS and hardware compatibility issues made it hard to support that aging software long-term. (Raise your hand if you have a 15+ yr old Compaq running Windows 98 to keep your legacy software alive – I know you’re out there!). Those compatibility issues may have pushed you toward the “Software Maintenance Fee” model. This new approach would upgrade you to the latest software version boasting security updates, new features, and a shiny new user interface to re-learn if you were willing to pay the yearly premium. But the changes didn’t stop there (thank-goodness!)
Fast forward to the current era of modern cloud-based SAAS solutions for business. Some people love it. Some people are taking a little longer to love it. The reality is, the SAAS model does enable some tremendous user-benefits, not least of which being the ability to roll out new features and functionality directly to the customer in record time. Take for example ProShop’s continued efforts to deliver enhanced cybersecurity controls to its platform to make it more secure while meeting the requirements of industry regulators.
At this point, you might say: “Cool, but why the history lesson?”. Fair enough, i’ll get to the point:
These days, There’s a B2B SAAS solution for just about everything. With that, manufacturing businesses are eager to build their tech stack in a way that will give them a leg up over the competition. But how do you know which software vendors can actually back up their claimed ROI? Which solutions will meet the stringent cyber-security requirements of the highly-regulated industries? With so many options, it can be hard to know for sure until after you’ve made a purchase. A bad decision could be catastrophically harmful to your business. We believe that being proactive and scrupulous in your review of software and technology is the best hedge against making the wrong investment. More than being just a software vendor, the right solutions provider should serve as a strategic technology partner to your business. So with that, let’s review the 6 key qualities you need to identify in your technology partnerships.
1. Transparency Trust is essential for any healthy relationship, much less a years-long business relationship with a software vendor or technology partner. Be on the lookout for vendors who openly communicate about their processes, people, product, and data security practices. Transparency ensures that you understand what you’re getting into when you engage with them, minimizing or hopefully eliminating any ugly surprises. This transparency fosters trust between your organization and theirs. Ask alot of questions and their answers will likely reveal any red flags.
2. Industry Knowledge Manufacturing is a specialized field with very unique challenges. We don’t mind saying that generic ERP software is very different (inadequate, even) compared with ERP Software designed for manufacturing businesses. So seek out solution providers who have deep industry knowledge and understand the intricacies of your business and the problems that you face. They should be familiar with the manufacturing process, purchasing, regulatory compliance, and specific pain points that are unique to manufacturers. It’ll be easy to spot the difference by asking very nuanced and specific questions about your business challenges and asking the software vendor to demonstrate how their solution will solve your specific problems.
3. References Ask to speak directly with happy customers, but take it a step further and ask to speak with a happy customer that has a similar business to yours and has been using that software vendor’s solution for a while. Testimonials and Case Studies are great, but those are the data points that a software vendor has hand-picked for you to see. Try your best to get that social proof directly from the source where possible, and even dig for examples of unhappy former customers. You’ll get the most honest feedback that way.
4. Track Record
Software vendors with a track record of solving real-world problems for customers like you need to demonstrate three important characteristics: authority, reliability, and competence. When you consider their track record, there are three buckets that might categorize a software vendor:
The vendor that has been around for a while but has failed to innovate and keep up with the times, choosing instead to rest on their laurels and the recurring revenue from a duped and indifferent customer base.
The well-funded new-kids-on-the-block that know nothing of your industry or the challenges you face but are intent on making millions with their sexy new SAAS product. Don’t be deceived!
The vendor who has stood exactly where you stand now. The one who looked around and uttered in disbelief “There’s got to be a better way!” and then promptly went off to toil away on creating the solution. This identifies your ideal technology partner.
Don’t be fooled by cheap tricks and surface level flashiness. Look for substance. A solid history of performance and industry awards are great, but sussing out the genuine solutions provider is best achieved through dialog.
5. Return on Investment (ROI) You don’t like paying high prices for software, and neither do I. That being said, the cheapest option can cost you dearly if it’s the wrong solution. Endless workarounds, a lack of scalability, basic features locked behind a pay-wall, customer service tickets that don’t get responded to, broken functionality, and disruptions to your operations will be more painful than coughing up more cash for the right solution that provides a force-multiplying return on investment. Yes, compare the pricing, but also run the numbers to determine the full ROI. Let the data help with the decision making rather than your emotions.
6. A Commitment to YOUR Success Your technology partners should have a vested interest in seeing your business thrive with their solution. The implementation process of their product into your business should clearly demonstrate this. It becomes a two-way street. Your success with their product means that you’ll be quicker to recommend it to others too. This reciprocity in the B2B relationship is the basis for a valuable and long-term technology partnership. Look for ongoing support, good communication, regular updates, and a willingness to adapt as your needs evolve. A vendor committed to customer success will collaborate with you to optimize how you use their product to win the day and address any issues promptly.
Selecting a software vendor for your manufacturing business is an important and strategic decision. Prioritize transparency, industry expertise, social proof, a strong track record, ROI considerations, and a customer-centric approach. By doing so, you’ll lay the foundation for a successful partnership that drives your business forward and gives you an edge over the competition. Remember, the right software vendor isn’t just a supplier; they’re a crucial ally in your manufacturing journey. Invest in the right technology partnerships by filtering potential vendors with these 6 qualities. At ProShop, we strive to embody these qualities. If you need an effective ERP solution, consider booking a call today and put us through the paces with these 6 qualifiers!
