ERP solutions are popular among modern manufacturing and distribution companies needing to streamline business operations and increase productivity.
However, many organisations are still uncertain about investing in an ERP solution because they have heard several myths about the technology.
One of the most common ERP myths is long payback cycles – making them an expensive short-term investment.
However, data from leading ERP provider SYSPRO and research firm Frost & Sullivan proves this is untrue.
Short repayment period
SYSPRO and Frost & Sullivan conducted research that is presented in the whitepaper “ERP Myths & Truths – Dispelling Misconceptions About Enterprise Resource Planning Systems.”
This whitepaper details how 16 common ERP myths are false – including the perception that ERP solutions have a long payback period.
This myth is crushed in the whitepaper, with the data showing that an ERP investment takes just 16 months on average to fully pay itself off. In certain cases, this process can be even shorter.
What’s more, SYSPRO and Frost & Sullivan found the cost of owning an ERP system is approximately 3-5% of a company’s annual revenue.
This is a sizable investment, making it even more impressive that the repayment period for an ERP system is approximately 16 months.
Impressive return on investment
The report also highlights the need to set realistic Return on Investment (ROI) targets for the ERP investment before the system is adopted.
This ensures the implementation of the ERP system will align with your organisation’s operational and digital strategies.
Importantly, research shows that ERPs pass this ROI test with flying colours.
According to an ERP Report by Panorama, 81% of organisations that performed an ROI analysis before adopting their ERP systems met these expectations after only one year.
In fact, ERP implementation made a positive impact on almost all KPIs in this period, as shown in the graph below.
SYSPRO
To take advantage of the short repayment period and impressive ROI that ERPs offer, SYSPRO is your best choice.
SYSPRO is a leading provider of ERP business software for manufacturing and distribution companies in Africa, and it sets itself apart by offering industry-specific ERP solutions to meet your specific needs.
Companies which use SYSPRO ERPs gain business efficiency, become more streamlined, and invariably increase their profitability.
