It is no surprise that business organizations have
been beating paths to the doors of enterprise system
developers. A successful ERP project can cut the
fat out of operating costs, generate more accurate
demand forecasts, speed production cycles, and
greatly enhance customer service––all of which can
save a company millions of dollars over the long
run. At Toro Co., ERP, coupled with new warehousing
and distribution methods, resulted in
annual savings of $10 million due to inventory reduction.
Owens Corning claims ERP software
helped it save $50 million in logistics, materials
management, and sourcing. ERP also resulted in
a reduction in inventory because material-management
planners had access to more accurate
data––such as how much inventory was already in
the pipeline––and could do a better job forecasting
future demand [29]. ERP systems reportedly also
lead to improved cash management, reduction in
personnel requirements, and a reduction in overall
information technology costs by eliminating redundant
information and computer systems
It is no surprise that business organizations havebeen beating paths to the doors of enterprise systemdevelopers. A successful ERP project can cut thefat out of operating costs, generate more accuratedemand forecasts, speed production cycles, andgreatly enhance customer service––all of which cansave a company millions of dollars over the longrun. At Toro Co., ERP, coupled with new warehousingand distribution methods, resulted inannual savings of $10 million due to inventory reduction.Owens Corning claims ERP softwarehelped it save $50 million in logistics, materialsmanagement, and sourcing. ERP also resulted ina reduction in inventory because material-managementplanners had access to more accuratedata––such as how much inventory was already inthe pipeline––and could do a better job forecastingfuture demand [29]. ERP systems reportedly alsolead to improved cash management, reduction inpersonnel requirements, and a reduction in overallinformation technology costs by eliminating redundantinformation and computer systems
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