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ROI (Return on Investment) is part of eresource Xcel ERP implementation

Manufacturing companies must assess tangible and intangible benefits after ERP implementation. Over the years use of manufacturing ERP system among the companies in the manufacturing sectors have been increased substantially. The wide spread usage of ERP system among the manufacturing companies can be attributed to tangible and intangible benefits that the system can bring to the companies. When calculated on the basis of Return on Investment (ROI), the Enterprises Resource Planning (ERP) solution is a application worth implementing.

eresource, the pioneers of web-based ERP solution in India have realized that just developing a common ERP solution for all industrial verticals is not going to serve the purpose. This realization has made us to think a more practical manner and decided to developed industry-specific solution for each industrial vertical. With introduction of these exclusive ERP systems for various industrial segments have made it possible for the organization to work easily on their all business process and this smart move has increased the ROI (Return on Investment) and also reduced the operational cost by cutting down unnecessary expenses.

There are many advantages of using an exclusive ERP system like eresource Xcel for manufacturing industry. And one of the advantages being that it is integrated solution for the entire business. With the implementation of this intelligently integrated eresource Xcel ERP system, a manufacturing business (large or small) could eliminate multiple and disparate operations software systems that usually don’t communicate with each other very well. Apart from this, an old-styled custom-built legacy systems not only become difficult to manage, but they also pose unique challenges in terms of upgrade or adaptation to the latest technology standards.

With the implementation of a nextgen ERP system like eresource Xcel, companies will get not only a fully integrated solution for all aspects of business but it also comes with its framework of upgrades to changing technology. These upgrade facilities and other future improves are done in accordance with the requirement of a future business operations that will help a better return on investment (ROI) .

It is also to be noted that accessing ROI of ERP system needs a detailed study and many a time it can be little complicated task. It is therefore many of the IT managers and even the decision makers in companies do not spend their efforts to identify it. There are also instances that many IT managers don’t know how to properly measure the ROI, or they simply aren’t interested in measuring it at all. There are also other reasons that even some of the large companies do not spare time to check the ROI of ERP, as they consider ERP is simply a tool that necessary to do business in the first place.

It is there is common belief in many larger manufacturing companies are that ERP is simply a tool to do business and therefore there is no reason for assessing ROI. However it is not correct. Because understanding the ROI of your ERP will make it clear for you about the tangible and intangible benefits that the system brings into your business operations.

However, implementation of the right ERP which are operational-efficient and economically viable are an important factor when it comes assessing the ROI. ERP systems like eresource Xcel for Manufacturing can be implemented within limited budget. There are options like Cloud based and on-the-premises implementations are available. For companies in the midsized business sector, Cloud based system are advisable as it is more economical. The cost of ERP implementation includes the license costs, software costs, and implementation costs for the system, in addition to the costs of training staff. These costs must then be measured against the revenue advantages gained, which might be directly quantifiable based on reduction in cost or improvement in productivity.

Apart from the above assessment, calculation of ROI from an ERP system must be measured through the intangible benefits such as improved opportunities for future accrual, better time to market for products, increased sales, and/or improvement in manufacturing practices.

To know more about ERP implementation and Return On Investment (ROI) on ERP, please write to us or call us.