There\u2019s no denying that Enterprise Resource Planning (ERP) software is an investment. Manufacturers and cabinetmakers looking to implement an ERP<\/span><\/a> are smart to weigh up the cost against the potential benefits.<\/p>\n This guide will briefly outline the return on investment (ROI) you can expect from implementing a fit-for-purpose manufacturing ERP.<\/p>\n ERP software<\/a><\/span> brings all your planning and design, operational, financial, personnel and sales data into a simplified system.<\/p>\n ERP software provides a centralised source of truth rather than connecting different software platforms like some kind of Frankenstein\u2019s monster of management.<\/p>\n All your information is in one place. Data automatically syncs across your operation in real-time, so different teams work from the same page. And most importantly, management gets the tools to make better business decisions<\/span><\/a>.\u00a0<\/span><\/p>\n Manufacturing ERPs range from a few hundred dollars a month to a few hundred thousand<\/i> dollars over several years.\u00a0<\/span><\/p>\n The cost depends on your organisation\u2019s size, complexity, and requirements, plus ongoing support, hosting, features, custom developments and more.<\/p>\n The easiest way to understand how much an ERP will cost is to source quotes from providers<\/span><\/a>.<\/p>\n Benefits come in many forms. Of course, higher profits and lower costs are two of the most notable bottom-line benefits. But it\u2019s important to factor in the range of returns, both tangible and intangible when projecting the long-term ROI of ERP.\u00a0<\/span><\/p>\n Putting a dollar value on ROI is tricky with all those benefits in the mix. So it may help to divide the benefits in three ways:<\/p>\n 1. Financial<\/strong><\/p>\n Estimating the financial returns of implementing an ERP software is relatively straightforward.<\/p>\n This will give you a baseline figure to work with. But remember, this is likely a short-term figure and not the complete picture.<\/p>\n 2. Operational<\/strong><\/p>\n Implementing an ERP improves productivity across your operation. Whether you\u2019re a sole trader, small business or multi-site manufacturer, operational ROI continues to build over time.<\/p>\n Estimating this figure involves financial forecasting. Work with your ERP provider<\/span><\/a> and accountant to understand the potential upsides, then create scenarios that project those returns into the future.<\/p>\n 3. Management<\/strong><\/p>\n With the total transparency of an end-to-end manufacturing ERP like Jobman, management can access insights, trends and forecasts to make strategic decisions more confidently<\/span><\/a>:<\/p>\n ERP software enables businesses to break through the ceiling and grow sustainably<\/span><\/a>. While it\u2019s tricky to put a figure on that growth, a business coach or consultant might be able to offer a range.<\/p>\nWhat is an ERP?<\/h3>\n
How much does a manufacturing ERP cost?<\/h3>\n
ERP returns for Australian manufacturers<\/b><\/h2>\n
Cost savings<\/h3>\n
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Reduced waste (time, materials and money)<\/h3>\n
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Increased productivity<\/h3>\n
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Win more business<\/h3>\n
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How to calculate the ROI of ERP<\/b><\/h2>\n
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Many happy returns from Jobman, the best manufacturing ERP<\/b><\/h2>\n