The Benefits of ERP Solutions

An ERP package should provide an organization with a solid foundation,

incorporating all of the fundamental aspects of running a business.

Expectations run high when an organization deploys an ERP package

— if the solution is a good fi t for the company, the company stands to

gain tremendous cost savings and service improvements across the

enterprise. Manual processes are automated, production scheduling is

more effi ciently managed and inventory is more accurately assessed. Also,

business performance can be measured in a much more holistic fashion

than ever before. This gives executives real-time visibility into all business

processes, enabling them to make better strategic decisions. In short,

with the right ERP package, a midmarket company can compete more

aggressively in global markets.

An ERP implementation can reduce costs in three primary categories,

according to Aberdeen Group’s “2007 ERP in the Midmarket” report:

inventory costs, manufacturing operating costs and administrative costs.

The survey’s 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.

Because an ERP solution has its fi ngers in all aspects of running a business,

its benefi ts are myriad and go beyond tangible cost reductions. It can

improve an organization’s customer service and response time when

solving issues. It can solve issues of interoperability among multiple

manufacturing locations. It can standardize and accelerate manufacturing

processes in all of a company’s manufacturing sites. It can streamline a

manufacturer’s order-fulfi llment processes. It can facilitate connecting

with partners’ and suppliers’ enterprise systems. ERP can even help an

organization maintain compliance with government regulations, from

hiring practices to environmental laws.