The Cost Savings of Sage ERP X3 Add Up

28 Sep

The Cost Savings of Sage ERP X3 Add Up

There are many benefits of implementing Sage X3. Sage X3 helps the average business to improve efficiencies, automate workflows and alerts, and much more. Quantifying these benefits yields surprising information. Research shows that a mid-size company in the business of manufacturing, distribution and services can receive a net present value benefit of US $1.7 million and an ROI of 177%.

About the Survey: Forrester Research

Forrester Research conducted a cost-savings analysis at the behest of Sage, the parent company behind Sage X3, to assess the overall savings for businesses after implementing their product in the workforce. The results indicated considerable efficiencies and savings throughout the company.

When ascertaining cost-savings, it is important to identify key areas and winnow out extraneous data to ensure the results are accurate. Forrester’s research included customer interviews and other fact-finding, but was not an exhaustive assessment of the situation. Nevertheless, the benefits derived after implementing Sage X3 were noticeable and found in many areas of the company’s operations.

Labor-Saving Benefits with Sage X3

When Sage X3 financial module was implemented, customers reported labor and time-saving in the area of financial reporting. According to the report, the sample company whose data was analyzed would have had to add one full-time employee to receive the equivalent benefits of Sage X3 financial module. The amount of time and labor spent seeking, collating, organizing and analyzing the data by a person was saved by the use of the module.

Consider what the average salary is at your company for a mid-level financial professional. That is the approximately cost-savings one may assume from the implementation of Sage X3.

Improved Purchasing and Organization of Materials

Another significant benefit derived from the implementation of Sage X3 was in the area of purchasing and organization of materials. Such an area for many manufacturers can be quite challenging, and place within their company that is easy to overlook when seeking money-saving opportunities.

With the implementation of Sage X3, the organization surveyed saved 4% annually on the cost of materials. This was achieved through better management and purchasing foresight on global markets. Better management provided more lead-time to order goods, which resulted in the ability to negotiate discounts with suppliers and seek the most cost-effective shipping method. When activities are no longer on a ‘rush’ timetable, you can obtain many money-saving discounts.

Standardizing Sales Processes

It may seem that the sales department is an unlikely area to benefit from an ERP implementation, but that’s just what companies reported when Forrester interviewed them after their Sage X3 implementation.

Among those companies surveyed, an organization with a complex sales environment benefited the most from the implementation. This company sold numerous products with a complicated discount and bundling structure overlaid on the sales information. With the advent of Sage X3, the company was able to streamline, organize, and systematize their data, so that discounts could be approved globally. Prior to the implementation, discounts were approved locally and as one-offs. Now, discounting structures could be overlaid on the entire organization so that one-offs became an anomaly instead of the norm.

Think of what such a structure could mean to your business. If you are constantly handling single requests from the sales department, perhaps a standard process, implemented through your ERP system, could be the answer. Such a process could standardize and streamline the entire sales discounting structure to avoid losses and significant discounts.