ERP Benefits: ERP helps midmarket businesses

According a survey on ERP, it was found that ERP implementation can reduce costs in three primary categories: inventory costs, manufacturing costs and administrative costs. But because an ERP solution has its fingers in all aspects of running a business, ERP’s benefits go beyond tangible cost reductions.

Businesses around the world are increasing their reliance on ERP systems as a cost-efficient alternative to their software applications. However, the high cost involved in the deployment of an ERP solution prevents SMBs from enjoying the tremendous benefits of ERP. Luckily, the introduction of web-based ERP has made using ERP solutions an affordable and low-cost resource for these businesses.

Manual processes are automated, production scheduling is efficiently managed and inventory is accurately assessed. Businesses are now able to measure their performance in a more holistic fashion, giving execs real-time visibility into all business processes. Now they are able to make better strategic decisions to help make their company more aggressively competitive in global markets.

Companies in the manufacturing sector are taking advantage of these ERP benefits to improve their customer service and response time when solving matters and issues of interoperability among multiple manufacturing locations.

Case studies done on specific ERP implementations reveal a variety of different business-specific benefits. One of the case studies revealed that by replacing legacy systems with an integrated ERP package, one travel-accessories manufacturer reduced its inventory levels by 30 percent, reduced its warehouse space requirements by 38 percent, improved its month-end close process by five days, reduced its DSO (Days Sales Outstanding) by 44 percent and increased sales by 100 percent without hiring new employees.

Tags: ERP advantages, ERP benefits