aspects of running a business

ERP Benefits: ERP helps midmarket businesses
BUSINESSES 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 latest technology.
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 environmental
laws.
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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