ERP Systems Will Save Money and Increase Profits

Recently, Aberdeen Group, a leader research provider, announced that small and medium size enterprises (SMEs) that use enterprise resource planning (ERP) will be more successful. Aberdeen published a report, “ERP in SME: Fueling Growth and Profits”, which states that SMEs are 50% more likely to have better visibility if they use ERP solutions.

The reports also said that SMEs, with annual revenues below $500 million, have to have an efficient and solid infrastructure in order to have a competitive edge. This is key for success and growth for these companies in the future.

The Vice President Research Fellow and Group Director at Aberdeen, Cindy Jutras, commented. She said, “As optimism increases for a worldwide economic recovery, small-to mid-size enterprises once again look forward to revenue growth. As a results, SMEs must seek competitive advantages that enable them to contain costs to ensure that growth of revenues is not as the expense of profits. Enterprise Resource Planning (ERP) can indeed be a strategic weapon. Not only does it provide a necessary infrastructure that forms he transactional system of record upon which a business is based, but it also serves as a source of cost savings and operational improvements, streamlining and accelerating processes, allowing SMEs to compete on the same stage as larger companies.”

Essentially, with a solid and efficient ERP system, companies can save thousands or millions of dollars. Aberdeen says that businesses with an ERP system can expect to cut administrative costs by 20%, operating costs by 22% and inventory by 17%. These companies can also expect to increase internal schedule compliance by 17% and complete on-time shipments by 19%, with a high-performing ERP system.

Read more about this report on Aberdeen’s website.

Tags: aberdeen, ERP, ERP Solution, small and medium enterprises, SME