Too much Inventory?
Paying to rush supplier orders?
Taking too long to get paid?
Running at less than full capacity?
Paying for multiple, disconnected systems?


Slow, error-prone manual processes?
Entering information more than once?
Fixing yesterday’s problems instead of planning?
Getting different answers to the same question?


ERP Systems have been around long enough to prove their worth. There are measurable and tangible benefits that come from a well planned implementation. If you were to re-locate your production facility, you would evaluate several options; you would seek to understand the impact it could have on your business; and you would estimate of the cost savings. You should spend no less time and effort on the decision to implement an ERP system in your business and should justify the cost in the same way. A failed ERP system can be as costly as a failed re-location effort.


Knowing what kind of a return on investment may be possible can help you understand the value of an ERP system, and can help you decide how much time, money and effort you should be prepared to put into it. You can get a quick sense of how beneficial an ERP system could be for your business by plugging in some numbers below. The calculator benchmarks your figures in conjunction with some common rules of thumb for estimating high level cost savings.

We have referred to the experience of our clients as well as industry research (Goldratt, CBP Research, Aberdeen Group, and others) to validate the methodology in this simple calculator. It is designed to present an estimate of the possible payoff for investing in an ERP implementation and considers only the factors measured above. Your results may vary from this estimate, based on your circumstances, your implementation strategy and your technology.

Year End Value of Inventory: (up to 23%)
Year End Value of Accounts Receivable: (up to 18%)
Year End value of Purchasing costs (Raw Materials, Resale Goods, etc): (up to 5%)
Annual cost of Overtime: (up to 10%)
Annual cost of Rework or Repairs: (up to 10%)
      You could realize savings of up to:

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