By: Tim Sands

Selecting a new ERP solution will likely be the most important IT decision your company will ever make as it will become the information backbone of your company. The right system will provide you and your managers with critical information about how to better manage your business and drive more dollars to your bottom line. 

 

Before purchasing, however, you may want to know in advance what an ERP system will really mean for your bottom line.  An ROI calculator is one tool that can help determine the potential return on investment.  The numbers should help you see the value and savings you could be bringing to your organization such as cost reductions through better management of raw materials, tracking, and testing.  Implementing ERP should also help to better manage inventory:  where it is located, when it came in, expiration dates, co-mingling, placement, and storage/warehousing.  Order processing, accuracy, and on time real time production is also a benefit of ERP.  ERP allows order entry as fast as the order is made.  Lower costs, faster production times, increased ability to serve your customers right every time and respond to your competition, market trends, and industry forecasts are all pieces of a complete ERP with will  boost your ROI.

 

ProcessPro has an ROI Calculator. I offer it to companies seeking to measure this sometimes intangible value. It is easy to use tool, and can help you begin to quantify your return and see the possibilities and potential annual savings you could achieve with an ERP.

 

I’m also looking for other ROI tools for ERP that you have found helpful, comment to this blog with your experiences.