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ERP ROI Analysis and
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Understanding ERP ROI Analysis & Calculator

Tangible Assets

 

The ability to understand the tangible benefits that your ERP system can provide is, paramount in choosing the right business solution. With the introduction of an ERP System to your business, you could drastically change the way you operate. With features that help cut manual processes and improve procurement and AP processes. By reducing costs through better scheduling and planning, your operations will significantly improve.

Intangible Assets

 

Two intangible assets will help you to determine your ROI. These are improved workflows & financial operations. Unfortunately, intangible assets are harder to measure, but they still have a crucial role in whether investing is going to be worth it.

If you can implement the right system, you will cut costs and errors by increasing your accuracy, while enhancing your audit and compliance processes. The business improves their ROI by lowering their oversight costs regardless of their industry.

Risks

 

But implementing a new system does not come without risk due to the substantial investment. But benefits obtained from an automated ERP system, decrease the risk of such a considerable investment. It is worthwhile in asking whether the investment is worth the risk. Is your current software outdated and is performing poorly?

When ERP software is implemented successfully, your business has the ability to decrease the likelihood of budgeting issues and have reduced adoption times. To ensure that your business does not face more risks, it is vital to choose an experienced vendor that will help guide you through the journey and continue to support once your company goes live. The best way to combat risk and increase your ROI is to be sure you have an experienced and thoughtful support system to guide you every step of the way.

ERP ROI ANALYSIS & CALCULATOR

ERP ROI Calculator v2.xls
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Number of Employees  
 
Tangible Cost Estimates (Annualized) User Input Cost Reduction
Inventory
Inventory Carrying
Operating
SG&A
Distribution
Procurement
IT
Labor
Total Annual Savings  
 
Intangible Cost Estimates User Input Improvement
Average On-time Deliveries (%)
Average Financial Close Time (Days)
Order Fulfillment Time (Days)
Credit Authorization (Days)
 
Initial ERP Investment Low Estimate High Estimate
Software Licenses
Project Management / OCM
Technical Implementation Costs
Miscellaneous Costs
Total Investment
 
Simple Return on Investment
Paypack Period in Number of Years