How Much Does Your Legacy Manufacturing ERP Really Cost?

Most manufacturing business leaders know they should keep their technology up-to-date. Why is it then, rather than upgrading their outdated legacy manufacturing ERP, many stick with the status quo year after year? There are many reasons for this. Let’s look at a few of them.

What holds manufacturing businesses back from upgrading their legacy ERP?

Research shows that these are the most popular reasons manufacturers are often reluctant to upgrade their outdated ERPs.

• Resistance to change
• Inadequate sponsorship
• Poor project management
• Weak case for change
• Uncertain project scope
• Lack of internal skills to take on this kind of project

Which is the most popular among these? Resistance to change earned 75% of the vote in a survey by the consulting firm Deloitte. Inadequate sponsorship and unrealistic expectations followed this. But why? Often one of the driving forces behind a manufacturer’s resistance to replace a legacy ERP is cost concerns. You know there are both monetary and time costs involved if you’ve ever been through and ERP implementation before. So, it must be less expensive to hold on to your existing ERP software than to replace it, right?

Sure, you’re avoiding the obvious costs of buying new ERP licenses and hiring an ERP consultant to help you get the new system up and running. But a study by Chain-Link Research found you’re also giving up some less obvious, but potentially very lucrative opportunities to grow your bottom line and boost efficiency.

• 2 to 10% revenue growth year over year
• 1 to 5% gross margin growth year-over-year
• 24% spike in on-time deliveries
• 13% reduction in inventory volume
• 11% lower administrative costs
• 16% decrease in operational costs
• 79% improvement in financial results tracking and reporting

While these results are impressive, you might think, “they’re just averages. There’s no way my business would see results like these.” But real manufacturing businesses achieved this and more when they moved to Acumatica, one of the most popular manufacturing ERPs on the market today.

Consider these examples:

• Live View Technologies shaved 50% off the time to process Accounts Payable and Accounts Receivable
• Toughbuilt Industries Inc. slashed the time employees spend on data entry by 20 hours per week.
• OFSI saw 100% sales growth and saved $375,000 in the user license and customization costs
• Korpack saw 100% revenue growth in year one.
• Panova boosted employee productivity by 400%
• FSC Lighting dropped the time spent on invoicing customers from five days to 20 minutes.

Want to see how these companies achieved their results? Click on the links above to read their stories.

Ready to explore your options for replacing a legacy manufacturing ERP system? Need help in choosing the best system for you? Over the last 30 years, our team has worked with manufacturers of all shapes and sizes. Schedule a call with one of our experts today and let us help you set a course for ERP success.

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