ERP Implementations Should Reduce Costs

Posted in: Blog- Jun 05, 2012 No Comments

A successful ERP implementation should reduce costs in three primary categories:

  • Inventory costs
  • Manufacturing operating costs
  • Administrative costs

A survey by the Aberdeen Group, 2007 ERP in the Midmarket, found best-in-class respondents reported a 21 percent decrease in inventory costs, a 17 percent decrease in manufacturing operating costs and a 16 percent decrease in administrative costs. The average respondents’ reductions were 11 percent, 8 percent and 9 percent, respectively.

But the overall business savings delivered by a successful ERP implementation go beyond mere cost reductions. Effective ERP should improve an organization’s customer service and response time when solving issues. It can solve issues of interoperability among multiple manufacturing locations. It provides standardization and increases speed of manufacturing process at all manufacturing sties. ERP can streamline order fulfillment processes and facilitate communications between partners and suppliers. ERP can even keep an organization within compliance with government regulations.

Dataccount can help identify both hard and soft cost savings that would result from a successful ERP implementation. Often, clients are surprised at all of the “hidden savings” that can be accrued once the new ERP system is in place.

If you are interested in learning where SYSPRO ERP software can save you money, call me at 212.595.1044, ext. 106.

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