Monday, July 28, 2008

Best-in-Class Success via ERP

Pressures to reduce costs outweigh all other business drivers regarding Enterprise Resource Planning (ERP) systems. While ERP is generally viewed as required, it can also be key to streamlining the business processes. Aberdeen Research has surveyed over 1200 manufacturing companies and found that while ERP implementation generally produced a reduction on costs and improvements in scheduling across the entire organization, Best-in-Class companies had better results:

  • 20% reduction in levels of inventory with 97% accuracy
  • 95% manufacturing schedule compliance
  • 97% on-time and complete shipments
  • An average of 3.3 days to close a month

This survey showed that Best-in-Class companies:

  • Implemented 30% more ERP functionality
  • Implementation is 33% more likely to be owned by line-of-business executives
  • Standardized enterprise wide procedures for all business processes

In order to achieve Best-in-Class, companies need to:

  • Assign ownership of ERP success to line-of-business executives
  • Broaden the use of the ERP system to include all of the functionality available
  • Standardize common practices and ERP implementation

Are you Best-in-Class???