Why invest in an ERP solution?

One of the major conclusions of a 2007 Aberdeen Research Report is that “invariably the most substantial reason for companies to implement ERP (Enterprise Resource Planning) is that without it, staying competitive is a practical impossibility”

This is confirmed by a survey by Aberdeen Research involving 500 mid-market companies which shows that those who have implemented an ERP solution have experienced the following benefits:

  • Reduction in inventory cost (Best in class achieve 17%)
  • Reduction in inventory levels (Best in class achieve 21%)
  • Reduction of administrative costs (Best in class achieve 21%)
  • Reduce day sales outstanding (increase Cash flow)
  • Increase inventory accuracy (Best in class achieve 97%)
  • Decrease time to close a month (Best in class achieve 3.6 days)
  • Complete and on-time shipments (Best in class achieve 96%)
  • Manufacturing schedule compliance (Best in class achieve 95%)
  • Standardize and accelerate business processes
  • Provide visibility to these processes in real-time to support effective decision-making

Despite this, mid-market companies often have a hard time investing in ERP software due over priced applications that fail to deliver on their promises, and mismanaged projects that result in unpredictable, sky high Total Cost of Ownership (TCO).

There are nevertheless Open Source solutions which revisit the Enterprise application’s business model and make it easier for small and medium sized companies to get access to ERP and CRM systems. Among the numerous Open Source applications available out there, I would pick two which each respond to specific business needs:

  • Open ERP – For its functional depth and its ability to meet the needs of the most demanding retailers and wholesalers. A solution capable of supporting the most complex business processes.
  • xTuple ERP – An easy to use and to implement system that supports the needs of distribution and manufacturing companies. A perfect solution for companies who want to be quickly up and running at low cost.

38 $
Number of e-commerce transactions in billion in 2015

Canadians who made an online purchase

Canadian retailers who do not have a website

Canadians intend to purchase on the Internet

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