| With rising material costs and the global economic | | | | - The companies using ERP solutions reduced costs |
| crisis, reducing expenses and costs all across the | | | | by 18 percent compared to the industry average |
| board is a key initiative for companies all across the | | | | of10 percent |
| world, but especially for small and medium sized | | | | - The performance results for deliveries increase by |
| companies. The economic environment is driving | | | | 20 percent for companies using ERP systems versus |
| companies to look for tools particularly technologies | | | | the industry average of 10 percent. |
| such as ERP (enterprise resource planning) | | | | - Back office cost including admin, accounting and |
| applications and solutions to meet these goals. | | | | finance dropped by 21 percent for ERP companies |
| However, when looking for the right ERP solution to | | | | compared to 7 percent for the industry average. |
| meet their cost cutting objectives, organizations are | | | | - The Best of Class of companies using enterprise |
| clear that they cannot sacrifice customer service or | | | | systems and tools (the top 10 percent) were all using |
| satisfaction for short term cost cutting benefits. With | | | | the most updated version of their ERP software. |
| the pressure of the company’s poor performing | | | | In conclusion, the top three cost reduction areas of |
| P&L and the cloudy economic climate it’s | | | | opportunity were: |
| easy to see how company manager would be | | | | 1. Making business processes visible to managers to |
| tempted to risk long term benefits such as market | | | | they could make improvements on a real time basis. |
| share and customer loyalty to achieve short term | | | | 2. Optimizing sales, customer relationship and back |
| profitability rewards. | | | | office processes |
| Survey reports from medium size companies | | | | 3. Optimizing labor, machine and plant assets, |
| indicated that ERP applications and software solutions | | | | inventory assets, fleet and transportation and |
| are essential tools for achieving optimal performance | | | | scheduling |
| and results in cutting company costs while increasing | | | | In order to make the best of class category in their |
| customer service and satisfaction by increasing order | | | | industry, organizations need to have an effective ERP |
| and delivery accuracy, and product availability. | | | | solution on board and more importantly in use. |
| The summary statistics for organizations with | | | | Manager must continue to train, reward, and |
| enterprise resource planning solutions already | | | | incentivize employees to fully take advantage of |
| deployed and in use to streamline operations and | | | | what their enterprise system has to offer and make |
| decrease costs are as follows: | | | | the tools available company wide, not just for a |
| Best of Class Organizations in 2009 Reveal That:: | | | | select few manager and employees. |