How do you measure the value of your ERP system for customers and partners?

Retail ERPs are the backbone for all customer touchpoints online or in store fulfilling customer requirements and to exceed customer expectations. ERPs manage the entire supply chain from inventory, pricing, promotions, order fulfillment of sales, returns, exchanges etc.

ERP is a backoffice tool that companies can use their sales and marketing results to enhance the experience of customer and make sales processes to be agile.

Customer satisfaction point is very important in this competitive market. A satisfy customer is a brand ambassador of your ERP but a dissatisfy customer can ruin ERP image in his network. Not only you have to take care customer satisfaction during implementation but also after go live as well. You can get the opportunity for new references, up sales and cross sales from a satisfy customer.

I see this point as more of a CRM measure of success not ERP. Indirectly, yes, ERP does help towards customer retention, but it does that in the background by helping you service customers faster or reducing cost so customers enjoy better pricing.

Enterprise Resource Planning (ERP) applications help CFOs understand and measure a company’s financials holistically. CFOs use ERPs to allocate resources to support products and services growth, manage contracts and entitlements, and manage assets at a general and sub ledger level. CRMs feed sales revenue data into ERPs. HCMs & SCMs bring other key financial data on payroll expenses, asset costs, etc. CFOs leverages all of this data to better understand the customer activities that should be supported via re-investments with more resources, or via M&As in the FP&A process. So while the CRM is a key system for sales and marketing leaders, CFOs value ERPs to see customer loyalty where it matters most, in the bottom line.

Retail ERPs are the backbone for all partner touchpoints either a manufacturer , distributor, or a service provider. ERPs manage the entire supply chain so partner collaboration becomes key in evaluations, onboarding, managing compliances- quality & legal, achieving ESG goals, meeting timelines avoiding or navigating through supply chain disruptions, evaluating performances and finding opportunities for betterment, optimizing costs etc.

In my perspective, Enterprise Resource Planning (ERP) is often hailed as a transformative tool for organizations, but its true value lies in the strategic alignment of business processes around its implementation. While ERP serves as a catalyst for integrating and automating operations, it's crucial for business leaders to recognize that it automates both beneficial and detrimental processes. The ultimate measure of ERP's success rests in the tangible benefits it generates, such as improved production planning efficiency and on-time deliveries. Evaluating the impact on revenue and considering potential business frictions post-implementation are essential factors in gauging the genuine value of ERP.

In my experience this is the top most indicator of ERP success. Improved organizational KPIs or outcomes indicate that ERP is well implemented with strategic vision and outcomes aligned and it is well adapted, with people trained and using the ERP (else the KPIs will not improve)

Business outcomes is based on how you are using your ERP effectivity and efficiently. There can be multiple factors which indicate the growth of your business with the help of ERP. Such as time saving in business transactions, more customer retention, full control on AR/AP, shorten and effective sales/purchase cycle and clear visibility on short term/long term goal of business and all resources are in sync with it. These are some parameters to know how your ERP is helping in your business growth.

An ERP system's value proposition extends beyond internal efficiencies; it's pivotal for customer and partner relationships. By integrating customer feedback loops and partner interfaces within the ERP, businesses can directly correlate system enhancements with improved customer satisfaction and partner engagement. This alignment not only strengthens the value proposition but also fosters a collaborative ecosystem where the ERP becomes a shared platform for mutual growth and success.