Manufacturing News

ERP drives operational value

October 1, 2009
/ Print / Reprints /
ShareMore
/ Text Size+




The turbulent economy has caused mid-size companies to focus on cost reductions, and that focus will continue as companies with annual revenues between $50 million and $1 billion face other challenges. Mid-sized companies will look to enterprise resource planning (ERP) solutions to drive more value by standardizing, streamlining and automating business processes and to provide the visibility they need to make well-informed decisions quickly and efficiently, says a report from Aberdeen Group.

The study, entitled ERP in the Midmarket 2009: Managing the Complexities of a Distributed Environment, suggests that mid-sized companies can no longer remain isolated in a world of distributed, global supply chains. Aberdeen found that companies with up to $250 million revenues experienced a steadily increasing number of operating locations, and distributed environments are increasingly causing pressures associated with interoperability between these operating locations.

The study suggests that top performing companies achieved impressive results from ERP implementations. These include a 17% reduction in operating costs, a 17% reduction in administrative costs, elimination or redeployment of 13 full-time employees, and the ability to close a month in 3.9 days.

The report shows that best-performing, midsized companies shared common characteristics:

• 70% have a standardized implementation of ERP across a potentially distributed enterprise;

• 79% use cross-functional teams including IT and a line of business to become involved in the selection and implementation of ERP; and

• 64% enable decision-makers to selectively drill down to successive levels of detail until reaching the underlying transactions.

The report advises midsize companies to take specific actions to be competitive. First, they should select and implement dashboards, portals or other inquiry and reporting tools that will allow drill down into transactions from summary data. Second, they should standardize ERP implementations across the enterprise. For more information visit www.aberdeen.com.

Did you enjoy this article? Click here to subscribe to Food Engineering Magazine.

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

Plant of the Year 2014

Blue Diamond Growers was chosen as Food Engineering's 2014 Plant of the Year. The Sacramento-based company is the world’s largest producer of almonds and almond ingredients.

Podcasts

Burns & McDonnell project manager RJ Hope and senior project engineer Justin Hamilton discuss the distinctions between Food Safety and Food Defense as well as the implications for food manufacturers of the Food Safety Modernization Act.
More Podcasts

FSMA Audit

What is the is most important step you have taken to become ready for a FSMA audit?
View Results Poll Archive

Food Engineering

FE August 2014

2014 August

The August 2014 issue of Food Engineering explores how your operation could be doing more to create a culture of employee engagement. Also, read more on how your business and insurance partners must know the basics of your business and its nuances as well.

Table Of Contents Subscribe

THE FOOD ENGINEERING STORE

Food-Authentication-Flyer-(.gif
Food Authentication Using Bioorganic Molecules

This text provides critical tools and data needed to augment routine food analysis and enhance food safety by aiding in the detection of counterfeit, and potentially deleterious, foods.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

Food Master

Food Master Cover 2014Food Master 2014 is now available!

Where the buying process begins in the food and beverage manufacturing market. 

Visit www.foodmaster.com to learn more.

STAY CONNECTED

FE recent tweets

facebook_40.pngtwitter_40px.pngyoutube_40px.png linkedin_40px.pngGoogle +