ERP Application

ERP Application Software in The Mid Market

ERP Applications- What is Expected From Enterprise Systems in Today’s Businesses

ERP Applications are seeing a new resurgence in companies across the globe. With higher material costs and the global economic downturn, reducing costs is a priority for mid-sized companies when sourcing ERP (enterprise resource planning) solutions and ERP applications. Yet companies today can’t sacrifice customer satisfaction to save costs. It’s understandable how the pressures from the challenged economy in tandem with management and financial pressures can drive managers to gain short term benefits but this is at the risk of far more important long term drivers that are vital to sustaining market share and long term viability.

Information from mid-sized companies surveyed show that ERP applications and solutions are essential to achieve the best performance results in reducing costs, while increasing accuracy, delivery performance and inventory management.

ERP Applications and ERP Software Benefits

Here are the summary findings for companies using enterprise applications and enterprise software solutions to increase company performance and cut costs.

The Top Performing Companies Show That in 2008 ERP Applications and Software Benefits showed:

• Costs were reduced by 20% by companies using ERP software compared to under 10% by the industry average


• Delivery accuracy increased 21% for companies using enterprise software


• Administration costs were reduced 21% with ERP applications versus industry standard reductions of 8%


• 116% more ERP functionality were used by the top companies


• Top performing companies were more likely, about 20% more, to be using the current version of their ERP application software

Overall, in reducing costs the 3 main areas that companies were able to cut costs were by

1) enabling transparency and visibility to business processes across the company,

2) optimizing sales, customer service and back-office functions such as accounting, finance, and admin, and

3) optimizing current capacity which includes labor, plants and equipment, warehouse space, fleet utilization, and scheduling of staff.

One in six companies did not have and ERP applications implemented and interestingly, not all were small companies. One out of 4 companies were medium-sized companies and more than 11 percent were large companies.

In conclusion, in order to achieve the best of breed performance in their industry sector, businesses need to not only implement an enterprise solution, they must continue to increase their use of features in their ERP applications and deploy the solution across the entire organization, not only a few key departments or key employees. To get company–wide buy in and integration or in other words, get more users working happily on the ERP software to its highest capacity, companies need to assign key mangers from every department as sponsors to ensure the enterprise systems are deployed and used.

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