Benefits Realized From Implementing an ERP System

  • Availability of Information 58%
  • Improved Productivity and Efficiency 48%
  • Integration of Business Operations 39%
  • Reduced Operating and Labor Costs 23%
  • Improved Lead Time and Inventory Levels 19%

Source: “Clash of the Titans, 2017”, Panorama Circle, Independent Study.

Multiple Systems Across an Organization Cause Confusion 

Many equipment dealers use multiple databases to run their dealership. For example, they may use an accounting tool for payroll, finance, and accounting purposes. Some combination of a spreadsheet, CRM, and or an e-mail client is typically used by sales representatives to keep track of customers. Warranties are often maintained through OEM portals, and parts and service typically maintain their own systems as well. As such, knowing understanding what’s really going on in your dealership can sometimes be challenging as the next section illustrates.

There’s More To the Story Than Disparate Systems Can Share

Typically every “object” in your organization has a rich story that touches all departments including sales, rentals, service, and parts. Examples of “objects” may be a machine, a customer, a machine line, and more. We can imagine, for instance, how a customer may leave a history trail spanning sales, rentals, service, and parts. The same goes for machines. Oftentimes, decisions require knowing the full story. Parts managers may need to collaborate with a sales manager, or a service manager may need to collaborate with accounting in order to move forward with a decision. There is a time cost involved with this as focused work is interrupted to provide interdepartmental answers. That’s where an ERP comes in.

ERPs Understand The Forest and The Trees

The power of an ERP, as just alluded to, is its ability to connect all of the dots pertaining to an individual “object”, such as a single customer, a single machine, or even a single part. Yet, ERPs are typically able to synthesize information in a way that provide big picture information as well. For instance, how profitable is a particular line of business, really, when considering all of the interrelated factors, such as warranty claims, days in stock, rebates, and more? Do our ag customers provide us better margins than our construction customers, and hence should our sales strategy be adjusted accordingly? You can see how an ERP provides a rich information-base from which to run your business. Yet, not all ERPs are built the same. Read this next article to understand why SAP® is the world leader among ERPs, year after year.

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