cost reduction ERP

This is why you reduce costs with an ERP system

ERP systems fulfill central functions in a company. Used in the right way, they provide a comprehensive picture of complex processes, deliver data in real time and thus become the engine for fact-based decisions.

There are many reasons for investing in a suitable software. Reducing costs is and remains the greatest motivation for many companies to use an ERP system.

3 reasons why you reduce costs with an ERP system:

    • 1. Transparency

      If a combination of different programs is used instead of an ERP system, the necessary overview of various information and processes is often missing – and leading to data islands and so-called media breaks between the systems. Where are the biggest costs incurred? How long does it take to process an order? Will the storage capacities be utilized in the best possible way?

      With a gapless and integrated mapping of the data, you ensure that this data can be analyzed and, for example, you can compare products, product groups or suppliers over time. This helps identify weaknesses in the value chain and reduce costs.

    • 2. Avoiding mistakes

      If information and data are collected in different programs, in many cases they cannot be used across departments. This is how so called data silos are caused, which prevent an exchange of information between the programs. The result: employees do not access standardized information and data is processed manually. Among other things, this increases the error rate and processing time considerably.

      This is where ERP systems can remedy the situation by uniformly mapping the relevant processes and costs that exist in your company. Sales, costs or claims can be calculated and tracked for each product or batch. Another advantage of automated systems: the linking of information from the vendor and customer master data means that the taxes due are allocated correctly.


      With an ERP system, you can ensure the correctness and completeness of your company data, understand your numbers in the long term, and take into account requirements in international business.

    • 3. Predictability

      Data analysis within a central system is the best prerequisite for successful forecasts. This applies, for example, to delivery times or route planning, in which resources can be used more efficiently. Instead of elaborate Excel calculations, ERP systems allow you to make consistent calculations that keep you in control of the exact purchase and sales conditions, provisions, discounts, and any other factors that are critical to your business. An important side effect: they identify problems before they occur.

    The better your ERP system fits your company, the more you profit from the opportunities for cost reduction. Industry solutions such as agilesFood for the food trade or agilesTrade for the consumer goods trade in the non-food segment already take into account numerous requirements of your business area. As a result, the software can be put into operation faster – at the same time, you will benefit in the long term from the experience of other companies.

    If you have questions about ERP systems and industry solutions, feel free to contact our team. Or read our case studys on how other companies benefit from ERP systems.

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