Implementing an ERP system can affect your business very widely, and sometimes in unpredicted ways. It helps your company to reduce the overall operating cost, increase productivity and offer standard features that automate business tasks and save time.
Many of these effects are more difficult to measure than others, that’s why a Return on investment ROI analysis is important. Estimating the ROI before choosing an ERP system can help lower overall costs.
ROI is the amount of monetary gain your company will realize divided by the amount spent, or the total cost of ownership such as License fees, Implementation costs, Consulting fees, maintenance costs including support.
Determining the ERP benefits – tangible and intangible benefits
When calculating the ROI of an ERP implementation project, there are tangible benefits and intangible benefits. Tangible benefits are the ones easily determined and calculated. Intangible benefits are the gains that are difficult to measure.
DETERMINING INTANGIBLE BENEFITS
- Ameliorate customer service
- Added efficiency and automation of business processes
- Effectively fixes errors
- Faster, accurate accounting practices
- Better information and reporting
Determining tangible benefits
- Optimized level of inventory through improved planning and control.
- Accelerating response time for returns or recalls
- Minimizing Accounts Receivable days outstanding
- Reducing overall operating expenses
How Does Odoo Help Businesses Measure ROI?
Tracking, monitoring, and reporting statistics are very important functions because if you don’t know how your teams and campaigns are performing, you will have already wasted a lot of time and resources unknowingly.
Odoo’s ERP solution has this tool called Link Tracker which is available from its Website module that helps you stay on top of your online campaigns, regardless of how many channels or how many campaigns you are running. At a few clicks, your marketing department will be able to see which marketing strategies are bringing in revenue and which ones aren’t.
In Addition, there are countless methods you can engage the use of consolidated, consistent, and accurate data to garner insights and unique views to find out which investments have been paying off, which ones are slacking off, and which ones you need work on.
This is largely due in part to Odoo’s flexibility as an ERP solution that drives everything from website creation, online marketing, supply chain management, inventory management, human resource management, project management, billing, and accounting.
ERP solutions, like Odoo, were practically made for this reason.