Analyses conducted by the SAP manufacturer and various research companies indicate the average increase in effectiveness of companies after the implementation of SAP ERP and the average waiting time for the effects to occur. For example, the American Production and Inventory Control Society (APICS) reports the following effects of implementing an ERP II system:
- sales growth of 16-28%
- Increased efficiency by 10-16%
- Reduced procurement costs by 7-16%
- Reduced stock levels by 7-75%
- Enhanced quality control and significant reduction of 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 utilization of available resources
- Ability to manage 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 comprehensive support of the planning, procurement, inventory management and sales and distribution functions
- The possibility to reduce the costs of procurement and cooperation with suppliers and increase the effectiveness of inventory management in the company
- Support in the optimum selection of suppliers and of the delivery execution method
- Integration of the logistics processes in one IT system, which helps to obtain obtain complete information about the availability of materials in stock, facilitating the processing of customer enquiries
- Reduction in the costs of producing goods through integration of production activities within the logistics processes of the company, in accordance with the MRP II standards
- Access to information about the entire organization which allows for a quick response to notifications received from customers and undertaking appropriate action, both within the company and acting in consultation with the key partners
- Integration of all areas of the company’s operations, which 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
- Elimination of manual work through automated business support processes, leading to a reduced workload for individual employees
- Simplified adaptations and adjustments in the event of changes in the economic environment and in tax regulations and other legal acts
- Enhanced security of the company’s IT systems.
Customers who are interested in measuring the tangible benefits and extra income gained as a result of implementing an SAP ERP system in their company can use a tool offered by SAP Poland which helps to calculate the estimated return on investment (ROI) of 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 use this tool or learn more about how it works, please contact us.
