all around the world are increasing their reliance on ERP systems as
a cost efficient alternative to their software applications.
However, high cost involved in deployment of this marvelous
technology prevents the small/mid size organizations enjoy the
tremendous benefits of ERP. Since the introduction of an affordable,
low-cost ERP from eresource ERP, many of the midmarket organizations
also started to administer their businesses effectively using this
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 fit 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
efficiently 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.
According to a survey an ERP implementation can reduce costs in
three primary categories: 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 fingers in all aspects of running
a business, its benefits 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-fulfillment 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
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.
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