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How Much Is Your Outdated Manufacturing ERP Costing You?

Written by Laura Schomaker

August 18, 2022

Yes, your outdated manufacturing ERP is creating a few problems here or there, but has it really reached a critical state? From a production perspective, you might think you’re “doing fine” and only experiencing a few bumps on the road. From a bottom-line perspective, however, your outdated and inefficient ERP may cost you. When you look at the big picture, small inefficiencies end up adding up into a significant amount of money. Let’s look.



A modern ERP can significantly increase efficiency in shipping. Imagine increasing on-time deliveries by an impressive 24% post-implementation. And as any manufacturer can tell you, being on time translates into increased customer loyalty. What could protect your bottom line more than that?

Operational Costs

On the Ops side, implementing an up-to-date ERP system will bring your operational costs way, way down. Estimates place this decrease at somewhere around 16 percent. How does ERP do this? In several ways. Decreasing IT overhead and increasing workflow efficiencies are just two. Admin costs will also go down after upgrading ERP, to the tune of around 11 percent.

Financial Tracking and Reporting

Maybe the most stunning improvement ERP can deliver is in how you track and report financials. Financial result tracking and reporting after transitioning away from outdated manufacturing ERP has been shown to go up by 79 percent. That means that you will have much more data (and cleaner data) informing your business insights, allowing you to make better and more lucrative decisions for your manufacturing company.

Inventory Volume

If you could manage your inventory as ideally as possible, your company would always be in the black, right? However, managing inventory is always complex and carrying high volumes weighs down on any company. With an advanced ERP solution in place, you can see inventory volumes go down by as much as 13 percent, meaning you will carry less dead stock and flowing more efficiently.


After all this good news, are you ready for more? Yes, ERP is great for revenues, too. The increased efficiency you will experience across all aspects of your manufacturing endeavors will translate into increased revenues as well. Estimates place the increased revenue you can experience after upgrading ERP to between 2 and 10 percent year-over-year.

By sticking with an outdated manufacturing ERP, you are only holding your company back and dinging your bottom line. Updating to a modern ERP translates into real dollars across your manufacturing business. Ready to explore your options and upgrade your manufacturing ERP, get in touch today.

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