According to a recent survey of mid-market U.S. manufacturers and distributors, the top three investment priorities of 2014 across both sectors are investments that will help increase sales (53%), increase productivity (36%), and develop new markets (36%). Those goals are certainly not unattainable when investments are made in a midmarket ERP systems proven to help manufacturers and distributors see success in all three of those areas.
Some of the major findings of the study include:
Beyond the top three concerns across both sectors, the study also noted that each had its own specific investment priorities for 2014 as well. Manufacture’s most important investments will be in technology, people, and processes to help them to increase productivity, efficiency, and sales. Distributors on the other hand are most concerned with investments to increase sales, enhance customer service, and develop new markets. Here is how ERP can help them reach those goals and overcome some of their biggest business challenges.
- Reduce costs: Through accurate, real-time information about daily operations, companies can make faster, smarter decisions which allow them to reduce operational costs by 23%, administration costs by 22% and administrative costs by 17% (Aberdeen Group).
- Improve processes: With an ERP system in place, you can eliminate rekeying, improve data accuracy, improve efficiency, speed turnaround times, and increase productivity. By improving order tracking, and decision making, midsized companies who are using modern ERP systems are able to increase on-time deliveries by 24% (Aberdeen Group).
- By aiding the implementation of best practices to help companies become more efficient and effective in procurement, cash collection, and other organizational processes while also speeding up order to shipment times by 23% (Aberdeen)
- Comply with regulations: ERP solutions automate and standardize processes to ensure compliance while audit trails enable documentation and reporting on activities related to compliance.
- Gain visibility: Business intelligence and analytics tools including exception alerts and triggers within an ERP system allows you to analyze information so you can take actions that will reduce costs and optimize order management, inventory management, and production control processes. Accurately forecast demand: Modern ERP systems allow distributors to providing an inventory accuracy average of 97% (Aberdeen).
- Make collaboration easy with tools such as ERP web portals allow you to share knowledge and speed up problem solving among employees, suppliers, partners, and customers; a proven way to increase customer satisfaction, speed time to market, and increase sales.
- Increase customer satisfaction: With modern ERP, distributors deliver complete and on-time shipments 97% of the time because they always have real-time insight into their critical information. This ensures customers are getting the best possible service to help companies in this competitive market retain current customers and attract new ones. (Aberdeen)
- Manage growth: Midsized companies who implement modern ERP systems are able to support change and grow operating margins by 21% (Aberdeen Group). With the right Midmarket ERP system, companies can scale to multiple locations and multiple companies with a single solution; simplifying the process and reducing costs. (Aberdeen Group).
Is your current ERP system helping you attain those goals? Our ERP evaluation template can grade your current accounting or ERP system and let you know how it is helping you reach your goals and how it may be keeping you from attaining them. Click the button below to get started.