SAP ERP – WHAT ARE THE BENEFITS OF IMPLEMENTING THE SYSTEM?
SAP ERP is the most popular integrated IT system in the world. SAP, leader among ERP systems for more than 30 years, offers the widest range of functionalities on the market to support businesses in making management decisions. Extendibility, flexibility and a possibility of adapting the system to the company specific requirements make it the best ERP solution available on the market, which guarantees a range of unquestionable benefits.
Analyses conducted by the SAP supplier and various research companies demonstrate an above-average increase in the effectiveness recorded by companies after the implementation of SAP ERP and the average time to occurrence of the effects. For example, the American Production and Inventory Control Society (APICS ) reports the following effects of implementing an ERP II system:
- sales growth by 16 to 28%
- increased efficiency by 10 to 16%
- reduced procurement costs by 7 to 16%
- reduced stock levels by 7 to 75%
- enhanced quality control and significant reduction of the production times.
The business benefits of implementing the SAP ERP system which are most often mentioned by its users include:
- improved management of the company by ensuring ongoing control over the utilisation of available resources,
- management of a group of companies using a single system,
- enhanced external and internal financial reporting,
- improved customer service,
- increased effectiveness of the company’s logistics processes, thanks to a comprehensive support of the planning, procurement, inventory management and sales and distribution functions,
- SAP offers the possibility of reducing the costs of procurement and cooperation with the suppliers and increasing the effectiveness of inventory management in the company. SAP supports the optimum selection of suppliers and of the delivery execution method. The integration of the logistics processes in one IT system helps to obtain complete information about the availability of materials on stock, facilitating the processing of customer enquiries,
- SAP helps to reduce the costs of goods manufacturing through integration of the production activities within the logistics process of the company, in accordance with the MRP II standards,
- SAP, as an integrated IT system, offers access to information about the entire organisation which allows for a quick response to signals received from the customers and undertaking appropriate actions – both within the company and acting in consultation with the key partners,
- integration of all areas of the company’s operations ensures easy information flow between individuals and facilitates work. Each system user can access data entered by people from different areas of the company within a single report and can quickly retrieve the source documents, if necessary,
- automation allows for elimination of manual work through automated business support processes, leading to reduced workload of individual employees,
- simplified adaptation and adjustments in the event of changes in the economic environment and in the tax regulations and other legal acts, and
- enhanced security of the company’s IT systems, optimised internal processes of the company.
The customers who are interested in measuring the tangible benefits and extra income gained as a result of implementing an IT system in their company, can use a tool offered by SAP Poland which helps to calculate the estimated return on investment (ROI) in SAP ERP. The calculation of ROI is based on assessment of the effectiveness of the company’s operations measured in terms of its financial performance. If you want to take part in the research or learn more about how the research is conducted, please contact us.
