Buying Order Management Software? Price Isn't Everything

If you've been through the software selection process before, you know how much time and energy it takes to find the right technology partner. 

Sales guy A says his software comes with guarantees and free training for just $500 a month.

Saleswomen B lists out six pricing tiers so complicated you're head spins.

They range from $400 a month to $6,000 a month, and you're pretty sure she's hidden tiny print that entitles her to your right kidney and first-born child.

Besides, do you really need a system that costs that much? 

For a complete guide to order management - including how to choose the right software - check out our Ultimate Guide.

There aren't enough guarantees to ease all your fears but understanding what you're getting for your money makes software purchasing decisions easier to justify.

Software development companies, especially newer ones, know that the competition is fierce. They offer many pricing concessions just to get a toehold in the market.

On the other hand, if you go with a heavy-hitter, you get a surefire solution - but a bigger price tag.

So, how do you match the needs of your company with the right order management software?

Keep in mind that price isn't everything. Whatever solution you choose must solve the key issues slowing down your order processing.

Getting Some Perspective

Starting with individual vendors might be the least efficient way to shortlist the best options.

Instead, zoom out and survey the playing field so that you can establish a better understanding of the industry. Capterra ranks software packages* in many categories, including Order Management Software.

After ranking them in order of importance for your organization, research the following components to understand pricing considerations:

• Logistics
• Inventory
• Order
• Supply Chain
• Distribution
• ERP
• Shipping
• Warehouse

How Do You Narrow Down the Choices?

Besides the fact that there are all those categories to consider, many of them include overlapping functionality. Of course, this is a boon if you can get one software that covers most of your needs.

Pricing will vary and isn't necessarily indicative of performance and usability.

Whether you pay $50 or $5,000 a month also depends on budgetary constraints, so use the Capterra (or another) pricing filter to help you narrow down the choice. 

Four Questions to Ask Software Vendors

To help you navigate the various options for Order Management Software, here are some simple questions to ask vendors* who make the short list.

1. How well will the software integrate with your existing systems, if at all?
   Don't find out after the fact that you've spent time and money on software that's not compatible with legacy systems. Get an honest evaluation upfront on the changes required to use the new software.
2. What does it take to set up and train users?
   Most vendors offer training as part of an implementation package.
3. What implementation and maintenance support are included in the sale?
   Make sure the vendor has a standard, negotiable implementation and support plan.
4. Who handles updates and upgrades?
   Updates should be cloud-based and should not disrupt your business. If you are paying a monthly fee, find out if this is included in the base price.
5. What can't I do in your system?
   If a provider is going to be honest with you, that's a good sign for a long term relationship. Not every system has every function, but you might not need every function. 

How Desired Functionality Impacts Your Purchasing Decision

Gather your requirements and understand your operations and processes before you look at a single application.

Consider bringing in a consultant to compile a non-technical list of problems that need to be solved, a statement of requirements*. This document serves as a guide to more detailed requirements and technical specifications. It provides:

• A concise requirement specification easily understandable by management
• A statement of key objectives
• A description of your current environment including all the systems and connections required.
• Information and references to existing systems documentation or business requirements documents
• Known design constraints.

The statement of requirements should be high level and address static details to ensure you are documenting the core business needs of your organization. 

Once you have created it, make sure all stakeholders sign off on it and agree not to add to the scope midway through the implementation (which is a fantastic way to increase costs).

Questionnaire Topics to Consider

Since your initial requirements for a new order management system are likely to involve several departments (sales, marketing, operations, etc.), you should consider a questionnaire that each stakeholder fills out.

This provides diverse feedback for the most pressing decision points. It's either this or spending as much time duking it out in a conference room as you would save from implementing the system in the first place. Also, it allows you to get everything in writing.

Remember that you aren't looking for a specific software but a comprehensive solution for your company. Here are some questions to get you started:

• What connections do you need? Do you use QuickBooks or a third-party system to take or full orders for your e-commerce platform?
• What systems do you want to replace? Which are must-have systems that the new OMS should accommodate?
• How much are you willing to change to make the new solution work?
• Do you want the same functions that you have now, but better? Do you feel you would be better served by a completely new system?
• What can you afford?

The list of features and priorities from the questionnaire and approved statement of requirements are a roadmap for everything that follows, so the more time you spend getting this right, making and agreeing to concessions, the more you'll get out of whatever order management software you choose.

Make Sure You Understand What You're Buying

So, now that you've done your due diligence, it's time schedule appointments with vendors.

Whether it's a call, video conference or face-to-face presentation, you'll be able to cut through the hype by sticking to the script you've prepared.

This makes it easy to cross off vendors who can't meet your needs within your budget.

Shortlisting two to three vendors helps you understand what you're really buying. The more information you can provide upfront, the more accurate the proposals and bids will be.

Ask each vendor to include a list of features customized to your requirements, so you know what you're buying and can easily compare your options.

Even better, ask for a features and benefits comparison that shows what you get with the base price.

If there are tiers of service offerings, the pricing sheet should summarize the features and benefits available at each tier.

The more legwork the vendors do to get your business, the more time you have to analyze each offering. This is critical if you want to present summaries for management that don't waste their time.

Most vendors will customize the data to your organization, but you need to tweak the documentation based on your expertise and knowledge of all the players.

Be honest about any gaps that still exist and that require manual intervention. If you are preparing the documentation for other decision makers, be clear about your own preferences and concerns with each vendor.

If you follow these simple tips, your life is going to be a lot easier during the implementation of your new or improved order management System.

Next up: schedule a demo of our fully customizable order management system, and understand how it can be built around your operations and processes.

*Sources:
https://www.capterra.com/order-management-software/
https://www.cio.com/article/2386740/enterprise-software/how-to-choose-the-right-software-vendor.html
https://www.projectsmart.co.uk/requirements-gathering.php