ERP As An Investment

Investing In ERP...

We can't say that it would be expensive to buy and implement an ERP software in your Small Business, though it will cost you much. Nor can we say it would be cheap! It is all about good or bad investment. Your company could spend big amount of cash on an ERP project and also get good return on it! So this is not an expense, but it could be if you think it is so. The truth is that you could have a decent return, and below is a simple example of how this can be achieved by just opimizing the inventory of your company, which is one of the benefits of an ERP solution:


In millions of dollars:
Before ERP After ERP
Product Price / Sales 5000 Product Price / Sales 5000
Inventory expenses 3200 Inventory expenses 2880 (10% less)
Wages 900 Wages 900
Other Expenses 750 Other expenses 750
Total Expenses 4850 Total expenses 4370
Profit 150 Profit 470
Profit Increase % * Profit Increase % 213%



As you can see, only 10 % optimization of inventory expenses could result more that 200% increase in profits. And your company's inventories are not the only thing that will be handled better.

 

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