There is no doubt that cost cuts occur after implementing ERP solutions, a Search Manufacturing ERP article stated, but each company needs to estimate these cost savings based on its unique operations and not just on "industry observed" benefits.
"Manufacturers should take the time to dig into the improvement opportunities that exist within their companies, as well as to recognize some of the possible pitfalls when estimating the project savings," the article stated.
Another important factor to ensure an ERP system's success is properly training employees to use it. Steven Phillips, an ERP professional, wrote in the article that unless employees know how to use the tools of the system, and are shown the benefits of switching their daily routines to integrate the new technology, they may not take advantage of it. This would limit a company's potential to improve productivity and therefore save or make more money as a result of ERP.
Many ERP systems being used in construction companies are underutilized, according to Roger Kirk, an expert quoted in a Constructech article. Kirk said companies need to make sure employees are receiving the basic training necessary to be able to use all of the system's critical functions so the company can gain the most benefits from its investment in the technology.