"While old and often over-used, the assertion that you can't manage what you don't measure is far more than a cliché," said Cindy Jutras, vice president, research fellow and group director, Aberdeen. "ERP provides the necessary infrastructure that forms the operational and transactional system of record for manufacturers of all types and sizes. With a history that spans almost three decades, ERP has truly become a mature business application. As ERP has become more pervasive in manufacturers, there is risk in perceiving it as a necessary infrastructure and neglecting to measure the business benefits resulting from its implementation."
Through this level of diligence top performing ERP implementations slash inventories by 22%, administrative costs by 18% and manufacturing operational costs by 20%. They also improve complete and on-time shipments by 17% and internal schedule compliance by 18%. These improvements can result in tens of thousands or even millions of dollars in savings.
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