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Investing In ERP: Why? When? How?


Enterprise Resource Planning, or ERP, is a growing trend in the
logistics industry, and investing in it, having it and utilizing it takes lots of money, strategy, time and effort. Understanding why, when and how to invest in ERP for your business is important for supply chain management.

 

Why to Invest in ERP

There are many benefits associated with the implementation of an ERP system at your company, including reducing costs and increasing productivity—two very important things in any logistics process.

However, it is necessary to add a large disclaimer for anyone looking into an ERP: Implementing an ERP just for the sake of technology or to keep up with other companies is not a reason to do so. You must have a strong business case for your organization to ensure it makes sense and is the right step (and worthy of the investment).

The integration done by ERP between multiple departments, steps in the process, etc. save a company money by getting orders out faster and payment for those orders back to the company quicker. Additionally, the integration of data speeds up the process, improving productivity.

Other benefits of investing in an ERP include improved customer service, stronger integration among different business locations and increased availability of information/data.

A study by Panorama Consulting, conducted each year on ERPs, consistently finds that companies should not implement an ERP unless they will benefit significantly from the investment, defined by key performance indicators and other business benefits.


When and How to Invest in ERP

Knowing an ERP is the right choice for your company and actually implementing it in the right way are two very different things. Take care to choose the right time to effectively implement an ERP.

While the 2014 Panorama Consulting survey found that 70 percent of those surveyed were pleased with their ERP, only 63 percent deemed it a success.

If and when you choose to invest in an ERP, make sure you have a solid business case for needing one. The time and cost associated with this investment is substantial. Additionally, gaining support across your company, all the way up the C-suite, is integral to the success of an ERP.

Resources are out there to help with the implementation process, as well as assist with some of the issues associated with an ERP. Apparel Logistics is a solution-centric group that can help you in your ERP implementation and make your ERP integration a success.  

 

Posted: 1/13/2015 1:03:11 PM by Global Administrator | with 0 comments


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