ERP for service providers

ERP for service providers

For service providers, it’s all about deploying staff and resources as efficiently as possible. They don’t sell products, but a service that requires time, knowledge and expertise. As the organisation grows, it becomes increasingly complex to keep a clear track of assignments, projects, hours, costs and client relationships.

An ERP system brings structure to these processes. Project management, time tracking and finance are brought together within a single central database, ensuring that everyone works with the same, up-to-date data. On this page, you can read exactly what an ERP system can do for service providers, which features are most important and how to find out which system suits you best.

These ERP suppliers specialise in the service sector:

SoftwareshakerProdware Nederland B.V.Magic Software BeneluxToolmasterOdooFellowmind Netherlands B.V.Grensloos / ESi IT Solutions B.V.DiginavAllSolutions B.V.Aiden Netherlands BVBravx NederlandAfasBoltrics B.V.Delaware Consulting B.V.TogetrOffimac NVSchoonsoftIVY Software / YVI Application FamilyDrydock ERPElevate-IT NVSageETS InformaticsionProjects BelgiumInforDTNEXT B.V.Sidekick online project softwareECI Software Solutions BVAxians Business SolutionsStrouwiTheValueChain NV4D Vision NVGMI Group NVFuse Solutions B.V.Simplicate Software B.V.FortiqoIsah Business SoftwareTeam SolutionsExactBouwflowdear digitalOracle9 Knots Solutions B.V.CegekaBlack Snow B.V.Oracle netsuiteSAPSocialERP B.V.Dynamic People9Altitudes Nederland B.V.InmoteSmart Value B.V.Geefirm B.V.Bluace B.V.The RMO CompanyConsolit BVArch-IT BVMicrosoft Dynamics 365AardugNu Software V.O.FECI Software Solutions Belgium BVDigiMedio

Why service providers choose ERP

For service providers, no two days are the same. Clients and projects constantly overlap, and budgets, deadlines and hours must be kept under constant review.

It is impossible to keep track of this manually. The result: hours not recorded correctly, projects exceeding their budgets, invoices sent too late and insufficient insight into profitability per client or project.

The modern service provider can therefore no longer do without ERP. This system links all key areas together in a single centralised system. Separate software systems are giving way to a single environment, in which everything is continuously interconnected.

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The 7 most important ERP modules for service providers

For service providers, this means that ERP software is designed to support project-based working, capacity management, client agreements and profitability per assignment. An ERP system for the service sector therefore usually includes the following modules:

Project management

Monitoring budgets, planning and progress for each project or assignment.

Time tracking and scheduling

Record hours worked and schedule staff based on availability and expertise.

Customer Relationship Management (CRM)

Keep track of customer contacts, quotations, appointments and communication history for each customer.

Contract and SLA management

Manage contract terms, service levels, fixed hours, subscriptions and renewal dates.

Invoicing

Automatic invoicing based on hours, projects, contracts or agreed terms.

Financial management

Gain insight into turnover, costs, margins and profitability per client, project or department.

Business Intelligence (BI)

Reports and analyses to provide insight into capacity utilisation, project performance and financial results.

When choosing an ERP system, also consider scalability: if you take on new staff or the number of assignments increases, the system will grow with you.

The key benefits of ERP for service providers

As a service provider, an ERP system gives you control over your processes, enabling you to manage every project from start to finish. Specifically, these are the key benefits:

  • Fewer projects exceeding their budget, as costs and hours are continuously tracked.
  • Faster and more accurate invoicing, as hours are processed automatically.
  • Greater insight into profitability per client, project or service.
  • Efficient staff planning through insight into availability and utilisation rates.
  • Less administrative work, as projects, hours and finances are automatically linked.
  • A stronger relationship with the client, as information is managed centrally and enquiries are followed up more quickly.

The risks of choosing software too hastily

  • Implementing ERP software is a major investment. If you choose too hastily, you’ll be stuck for years with software that doesn’t fit your work processes: a difficult implementation that runs over time, staff who avoid the new system, and customisations that quickly double the initial cost.
  • For service-based companies, time is the most important product. Accurate time tracking, project monitoring and invoicing are therefore central to a good ERP system. A system not designed for this leads to a loss of turnover that only becomes apparent afterwards.
  • These are the most common mistakes made during the ERP selection process:

    • Failing to compare enough ERP suppliers
    • Choosing on the basis of an impressive demo, a well-known name or time pressure
    • Opting for software that is primarily geared towards manufacturing or retail, rather than projects and time tracking
    • Underestimating the importance of good CRM integration for customer and quotation management
    • Underestimating the total cost of the project (implementation, training, licences and maintenance)
    • Involving staff too late or not enough in the decision-making process

    A good, well-considered choice therefore starts with an honest analysis of what your organisation needs – not just now, but also in three to five years’ time.

    Comparing service management software

    The ERP market is diverse: there is a suitable system for everyone, which doesn’t make the search for the right system any easier. With our selection tool, we map out your software requirements based on a series of questions. This enables us to make a targeted selection of the most suitable suppliers for your business.

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    Frequently asked questions

    Here you’ll find the most frequently asked questions about ERP Guide and how we work

    How long does an ERP implementation take in the services sector?
    A straightforward implementation can easily take three to six months, whilst more complex projects can take over a year.
    When does a services company need ERP?
    As soon as you lose track of hours, projects or invoicing, or if administration starts to take up too much time, it’s time to make the move to ERP.
    How does an ERP system help with managing client contracts?
    Because contracts, agreements and invoicing are managed from a single system, you’ll no longer miss any renewals or deviations. This means you always have a clear overview of what has been agreed and what is still outstanding.
    How much does an ERP system cost for service-sector companies?

    The costs depend on the size of your business, the number of users and the features you require. In addition to licence costs, implementation and maintenance also play a part.

    The service sector generally has the lowest ERP costs, as the processes are less complex and require less sector-specific customisation. As the exact costs vary significantly depending on the supplier, number of employees and required functionality, we have deliberately chosen not to quote a fixed amount here: our free selection tool will provide you with a price estimate tailored to your specific situation.

    Can’t find your question here? Please feel free to contact us.

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    Find the most suitable software suppliers

    Compare ERP software

    Choose your sector

    Why this matters in your ERP selection: When making your selection, it is important to take your sector into account. A system must perfectly align with your business processes. These processes differ per industry. For example, a wholesale company operates differently from a construction company and therefore requires different functionalities.
    Marc
    Mark Sanders
    Software Expert

    What type of manufacturing are you specialised in?

    Why this matters in your ERP selection:

    When selecting an ERP, it is important to take different types of manufacturing into account. Each sector has its own specific requirements for an ERP. For example, if you work with perishable goods, the ERP must be able to handle FIFO and best-before date data. Are you in fashion? Then colour/size matrices are important, etc.

    Marc
    Mark Sanders
    Software Expert

    How are your production orders planned?

    Why this matters in your ERP selection:

    In stock-driven production processes, items are manufactured based on sales forecasts. You want to keep inventory as low as possible without running into delivery problems. You then need ERP software that monitors stock levels and helps with reliable forecasting. Is your production customer-order-driven? Then orders must be taken into production quickly. The ERP must also take any customer specifications into account.

    Marc
    Mark Sanders
    Software Expert

    What does your production process look like?

    Why this matters in your ERP selection:

    In discrete manufacturing, you need an ERP with strong capabilities for building bills of materials. If you only do assembly, you are in luck: this typically requires less complexity from ERP systems. For (semi) process industries, these systems are not suitable. Here, the software must be able to handle formulas and recipes (ratios, mixing, etc.). Finally, project-based production is a completely different discipline and requires strong project management functionalities.

    Marc
    Mark Sanders
    Software Expert

    What production volumes do you work with?

    Why this matters in your ERP selection:

    In unit production, items are produced one by one (weighing, artisan products, etc.). In this case, ERP software must be able to accommodate many customer specifications. When products are made in multiple quantities at once, we refer to batch or series production. Due to the larger runs, inventory management functionalities are important. In continuous production, the production process is kept running as much as possible. As a result, ERP software must excel at calculating optimal capacity utilisation.

    Marc
    Mark Sanders
    Software Expert

    What type of trade are you specialised in?

    Why this matters in your ERP selection: When selecting an ERP, it is important to consider what type of trading company you are. Each sector has its own specific requirements for an ERP. For example, if you work with perishable goods, the ERP must be able to handle FIFO and best-before date data. Are you in fashion? Then colour/size matrices are important, etc.
    Marc
    Mark Sanders
    Software Expert

    Do you have a webshop that needs to be integrated?

    How many physical stores with point-of-sale do you have?

    Do you also import goods?

    Do you also export goods?

    What type of customers do you supply to?

    Why this matters in your ERP selection:

    Even among ERP systems for trading companies, there are major differences. How you answer the above questions determines which solutions are more or less suitable. If you import or export goods, you may for example need to deal with customs formalities. Do you supply to consumers? Then different legal regulations apply that you need to take into account.

    Marc
    Mark Sanders
    Software Expert

    What type of retailer are you?

    Why this matters in your ERP selection:

    When selecting an ERP, it is important to consider what types of products you sell. Each sector has its own specific requirements for an ERP. For example, if you work with perishable goods, the ERP must be able to handle FIFO and best-before date data. Are you in fashion? Then colour/size matrices are important, etc.

    Marc
    Mark Sanders
    Software Expert

    How many physical points of sale do you have?

    What type of customers do you supply to?

    Do you also import goods?

    Do you also export goods?

    Why this matters in your ERP selection:

    Even among ERP systems for retailers, there are major differences. How you answer the questions determines which solutions are more or less suitable. If you import or export goods, you may for example need to deal with customs formalities. Do you supply to consumers? Then different legal regulations apply that you need to take into account.

    Marc
    Mark Sanders
    Software Expert

    What type of service provider are you?

    Why this matters in your ERP selection:

    When selecting an ERP, it is important to consider what services you provide. Each sector has its own specific requirements for an ERP. For example, if you organise events, the correspondence with suppliers and staff scheduling must be well organised. Do you provide consultancy and invoice by the hour? In that case, a good time tracking system is essential.

    Marc
    Mark Sanders
    Software Expert

    Is time tracking important to you?

    Do you work with hourly rates and/or fixed rates?

    Is HRM an important part of your business?

    Does your organisation work on a project basis?

    What is the average lead time of your projects?

    Do you mostly supply to businesses or consumers?

    Why this matters in your ERP selection:

    Even when it is clear what type of services you provide, there are major differences between ERP systems. How you answer the above questions determines which of these are more or less suitable.

    Marc
    Mark Sanders
    Software Expert

    What type of logistics services do you offer?

    Why this matters in your ERP selection:

    When selecting an ERP, it is important to consider what type of logistics services you provide. Each sector has its own specific requirements for an ERP. Do you specialise in sea freight? Then a connection with Portbase may be important. Do you specialise in road transport? Then trip planning and route planning are important.

    Marc
    Mark Sanders
    Software Expert

    Do you organise loads in the following way?

    Groupage / Part loads (LTL)
    Groupage/part loads consolidated at a hub for multiple clients
    FTL
    Full loads for multiple clients
    Dedicated Logistics
    Transport for a single client
    Why this matters in your ERP selection:

    You will be using an ERP system, among other things, to track goods to be transported. Naturally, the ERP system must properly understand how you work and for whom you are transporting. Therefore, indicate how you organise your loads so this can be taken into account in the ERP selection.

    Marc
    Mark Sanders
    Software Expert

    Do you have your own fleet?

    Do goods need to be transported under refrigeration?

    Do you import goods?

    Do you also export goods?

    Why this matters in your ERP selection:

    These questions are important for making a more refined selection. When importing or exporting, you will need to deal with customs formalities. The ERP system must be able to support you by providing the right data and documents. Do you have a fleet? Then it needs to be maintained and depreciated correctly. Do goods need to be transported under refrigeration? Then you need functionality for temperature monitoring and control.

    Marc
    Mark Sanders
    Software Expert

    Government and NGOs

    Why this matters in your ERP selection:

    When selecting an ERP, it is important to consider what type of government services you provide. Each sector has its own specific requirements for an ERP. Let us know what activities you carry out, and we will find vendors with the right references and experience in that specific area.

    Marc
    Mark Sanders
    Software Expert

    Do you work on a project basis?

    Do you want a membership administration?

    Does the ERP system need to be connected to other softwares?

    Name of the software integration(s):

    Does the ERP system need to be available on mobile?

    Why this matters in your ERP selection:

    Even now that it is clear what type of government role you fulfil, there are major differences between ERP systems. How you answer the above questions determines which of these are more or less suitable.

    Marc
    Mark Sanders
    Software Expert

    What type of healthcare are you specialised in?

    Why this matters in your ERP selection:

    When selecting an ERP, it is important to consider what type of care you provide. The processes in a hospital differ greatly from an organisation involved in nursing or social services. Therefore, each branch of healthcare has its own specific requirements for an ERP.

    Marc
    Mark Sanders
    Software Expert

    Do you want to use the ERP system for client registration as well?

    Does your organisation offer overnight stays?

    Does the ERP system need to be connected to other softwares?

    Name of the software integration(s):

    Do you provide care on location?

    Why this matters in your ERP selection:

    Even now that it is clear what type of care you provide, there are major differences between ERP systems. How you answer the above questions determines which of these are more or less suitable.

    Marc
    Mark Sanders
    Software Expert

    What type of construction are you specialised in?

    Why this matters in your ERP selection:

    When selecting an ERP, it is important to consider the construction activities you specialise in. Each sector has its own specific requirements for an ERP. Property developers need very complex functionalities for risk management and (financially) monitoring the budget and progress. Civil engineering companies are characterised by the frequent need for a maintenance and certification module for the deployment of heavy equipment.

    Marc
    Mark Sanders
    Software Expert

    Does your organisation work on a project basis?

    What is the average lead time of your projects?

    Do you often work with many different parties?

    Does your organisation manage real estate?

    Why this matters in your ERP selection:

    Even now that it is clear what type of construction company you are, there are major differences between ERP systems. How you answer the above questions determines which of these are more or less suitable.

    Marc
    Mark Sanders
    Software Expert

    Do you carry out a lot of maintenance work?

    Do you also want to be able to schedule assets?

    Do you want time tracking for your employees?

    Why this matters in your ERP selection:

    Even now that it is clear what type of construction company you are, there are major differences between ERP systems. How you answer the above questions determines which of these are more or less suitable.

    Marc
    Mark Sanders
    Software Expert

    What type of education do you provide?

    Why this matters in your ERP selection:

    When selecting an ERP, it is important to consider the type of education you specialise in. Each sector has its own specific requirements for an ERP. Corporate training is more commercial than other forms of education, which may make CRM functions more important. In regular education, the ERP must handle the tracking of students (student tracking system).

    Marc
    Mark Sanders
    Software Expert

    Do your customers have a membership with you?

    Do you also want to use the system for student registration?

    Do you also want to use the system for HRM?

    Why this matters in your ERP selection:

    Even now that it is clear what type of education you provide, there are major differences between ERP systems. How you answer the above questions determines which of these are more or less suitable.

    Marc
    Mark Sanders
    Software Expert

    Do you also teach remotely?

    Do you work with timetables and location planning?

    Does the ERP system need to be connected to other softwares?

    Name of the software integration(s):

    Why this matters in your ERP selection:

    Even now that it is clear what type of education you provide, there are major differences between ERP systems. How you answer the above questions determines which of these are more or less suitable.

    Marc
    Mark Sanders
    Software Expert

    Are you an installation company or a service company?

    Why this matters in your ERP selection:

    These questions are important for making a more refined selection. There are many different ERP systems that specifically target the installation and service industry. By answering the above questions, it can be determined which vendors are more or less suitable.

    Marc
    Mark Sanders
    Software Expert

    Do you want the ERP system to be ready for IoT (Internet of Things)?

    Do you want an integration with key suppliers?

    Do you also carry out maintenance work?

    Do work orders need to be entered on mobile devices?

    Why this matters in your ERP selection:

    These questions are important for making a more refined selection. There are many different ERP systems that specifically target the installation and service industry. By answering the above questions, it can be determined which vendors are more or less suitable.

    Marc
    Mark Sanders
    Software Expert

    Does the system need to be accessible offline?

    Do you need to be able to monitor machines remotely?

    Do you also work on a project basis?

    Do you need to register refrigerants?

    Why this matters in your ERP selection:

    These questions are important for making a more refined selection. There are many different ERP systems that specifically target the installation and service industry. By answering the above questions, it can be determined which vendors are more or less suitable.

    Marc
    Mark Sanders
    Software Expert

    Do you carry out maintenance regularly?

    Do you work with Service Level Agreements?

    Does the ERP system need to be connected to other softwares?

    Name of the software integration(s):

    Do you work on a project basis?

    Do you want to record hours in the system?

    Why this matters in your ERP selection:

    There are many ERP systems that specifically target the rental sector. Answer the above questions to determine which vendors are more or less suitable. If you regularly maintain your assets, it is important to choose an ERP system with maintenance planning functionalities. Do you work on a project basis? Then project administration functions give you insight into the revenues, costs and margins of one or more projects.

    Marc
    Mark Sanders
    Software Expert

    Can you provide a brief description of your business activities?

    Why this matters in your ERP selection:

    To keep the selection tool manageable, we have chosen which sectors are listed by default. There is a chance your sector was not included in the overview. You can still use the selection tool. Provide a precise description of your business activities. The more you share, the more accurate the selection will be.

    Marc
    Mark Sanders
    Software Expert

    Does the ERP system need to be available on mobile?

    Does the ERP system need to be available offline?

    Is time tracking important to you?

    Do you work with hourly rates and/or fixed rates?

    Why this matters in your ERP selection:

    Since you did not select a standard sector earlier in the selection tool, we cannot ask industry-specific questions. However, by answering these questions you can still make your ERP search more specific. The questions are independent of your sector and help determine which ERP software suits you best. The more information you provide, the more accurate the selection will be.

    Marc
    Mark Sanders
    Software Expert

    Is HRM an important part of your business?

    Does your organisation work on a project basis?

    What is the average lead time of your projects?

    Do you mostly supply to businesses or consumers?

    Does the ERP system need to be connected to other softwares?

    Name of the software integration(s):

    Why this matters in your ERP selection:

    Since you did not select a standard sector earlier in the selection tool, we cannot ask industry-specific questions. However, by answering these questions you can still make your ERP search more specific. The questions are independent of your sector and help determine which ERP software suits you best. The more information you provide, the more accurate the selection will be.

    Marc
    Mark Sanders
    Software Expert

    Does your organisation have multiple locations?

    How many warehouses do you have?

    Do you work with multi-currency?

    Do you operate internationally?

    Is the head office located in the United Kingdom?

    Do you have any specific requirements we should take into account? (Optional)

    Why this matters in your ERP selection:

    Although these questions are not about activities within the company, the answers are of great importance. Most vendors use this information to determine whether they can meet the requirements of your implementation. For example, some vendors cannot handle international implementations or work exclusively with a single currency.

    Marc
    Mark Sanders
    Software Expert

    Enter the number of employees

    Why this matters in your ERP selection: When making your selection, it is important to know how many employees there are and how many people will be using the software. As a general rule: the larger the organisation, the more complex the implementation. This is not only because all users need to be trained, but also because decision-making often differs compared to smaller companies. With larger businesses, the vendor must be better able to handle longer communication lines and implementation timelines.
    Marc
    Mark Sanders
    Software Expert

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