Studies that surveyed manufacturers about the impact of ERP systems on firm performance indicate that company size and industry do not affect the results. Benefits have been indicated for large and small firms, whether they make standard or custom products or are in discrete or process manufacturing environments. This section explains the quantifiable benefits in terms of several areas of improvement. Reprinted from Maximizing Your ERP System by Dr. Scott Hamilton.
industry averages for improvements, implementation of an ERP system can lead to a 20 percent inventory reduction and an 18 percent receivables reduction. Figure 3.1 Summarized balance sheet for a typical $10 million firm Current Typical Improvement Benefit Current assets Cash and other 500,000 Accounts receivable 2,000,000 18% 356,200 Inventory 3,000,000 20% 600,000 Fixed assets 3,000,000 Total assets $8,500,000 $956,200 Current liabilities xxx,xxx Non current liabilities xxx,xxx S