Impact of ERP Upgrades and Compliance on Process Manufacturing
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For success in process manufacturing, ERP systems have to be constantly upgraded and process compliance has to be followed at every step. For more information visit: http://bit.ly/2deq71D
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Impact of ERP Upgrades and Compliance on Process Manufacturing
- 1. 1Copyright © 2015. Infor. All Rights Reserved. www.infor.comInfor Confidential Copyright © 2013. Infor. All Rights Reserved. www.infor.com 1 Upgrading Enterprise Systems for Success in Process Manufacturing Aberdeen Group
- 2. 2Copyright © 2015. Infor. All Rights Reserved. www.infor.comInfor Confidential The promise of ERP systems for the Process Industry As the foundation of a successful manufacturing organization, ERP helps Discover potential operational efficiencies Promote standards throughout the organization Manage front and back-end processes
- 3. 3Copyright © 2015. Infor. All Rights Reserved. www.infor.comInfor Confidential The Process Industry is not without challenges Comply with regulations Reduce operational costs Face increased competition
- 4. 4Copyright © 2015. Infor. All Rights Reserved. www.infor.comInfor Confidential Aberdeen highlights top pressures to improve operations Customers demand lower costs Need competitive differentiation 53% 65% 14% 25% 43% 35% Need to comply with current and future regulations Compliance is almost double for Process Manufacturers Keeping costs low is the top pressure Competitive differentiation is important Source: Aberdeen Group, August 2015 All Respondents Process
- 5. 5Copyright © 2015. Infor. All Rights Reserved. www.infor.comInfor Confidential What are the impacts of Process Compliance? Maintaining compliance drives lower operational costs and enables competitive differentiation! Every year, compliance regulations increase in number and complexity Out of compliance means millions in lost revenue Without operational efficiencies, maintaining compliance can raise costs
- 6. 6Copyright © 2015. Infor. All Rights Reserved. www.infor.comInfor Confidential What causes non-compliance for Process Manufacturers? Once a year 25% 15% 21% 14% 14% 8% 9% 12% 9% 15% 4% 8% Every 2 years Every 3 years Every 4 years Every 5 years More than 5 years between upgrades We do not perform upgrades All Respondents Process Source: Aberdeen Group, August 2015 Average Length between Upgrades to ERP Process Manufacturers: Average time between upgrades is over 3 years, longer than all others Twice more likely to not upgrade their ERP systems at all Primary reason for out-of-compliance is outdated enterprise systems 24% 21%
- 7. 7Copyright © 2015. Infor. All Rights Reserved. www.infor.comInfor Confidential Process ‘Leaders’ outperform ‘Followers’ Source: Aberdeen Group, August 2015 Leaders drive higher level of compliance (99%) This reduces impact on revenue due to out-of-compliance fines Leaders deliver better process and operational efficiency This reduces substantial costs associated with recalls Leaders drive 9% higher Operating Margin than the Corporate Plan It increases top line
- 8. 8Copyright © 2015. Infor. All Rights Reserved. www.infor.comInfor Confidential What are Process Leaders doing differently? Leaders build compliance & traceability into their production systems They have clear understanding & control of production processes This in turn reduces dependence of testing to ensure higher quality Leaders drive lower costs and stay compliant. Consequently they increase chances of success in a highly competitive industry!
- 9. 9Copyright © 2015. Infor. All Rights Reserved. www.infor.comInfor Confidential Process Leader’s advantage: staying on top of technology! Implemented on latest release 43% 27% One release behind 40% 18% Leaders Followers Source: Aberdeen Group, August 2015 Process Leaders understand the pitfalls of obsolete technology Over 80% of Leaders are either on latest release or one behind Leaders are 59% more likely than Followers to be on the latest ERP Why upgrade ERP? Outdated systems can’t handle new reporting & responsiveness requirements of regulations, resulting in costly non-compliance!
- 10. 10Copyright © 2015. Infor. All Rights Reserved. www.infor.comInfor Confidential ERP upgrades drive Enterprise KPIs Source: Aberdeen Group, August 2015 Higher operational KPI’s 94% On time & complete shipments with upgrade Vs 87% without Improve bottom line (KPI) 17% Reduction in inventory with upgrade Vs 9% without Increase top line (KPI) +5% increase in operational margin with upgrade Vs -2% without On Time and Complete Shipment 94% 87% Reduction in Inventory 17% 9% Operating Margin Vs. Corporate Plan +5% -2% The Benefits of Upgrading ERP Latest Version Not on Latest Version
- 11. 11Copyright © 2015. Infor. All Rights Reserved. www.infor.comInfor Confidential Cloud can help keep your ERP up-to-date 52% 45% 38% 38% 31% 28% Lower Total Cost of Ownership Configuration Flexibility Reduced Cost and Effort of Upgrades Ability to Scale Solution Lower Upfront Costs Ease of Use • Cloud ERPs are constantly updated, with little disruption to the organization • Cloud also lowers total cost of ownership (TCO) and scales easily • So you can simply focus on serving your customers!
- 12. 12Copyright © 2015. Infor. All Rights Reserved. www.infor.comInfor Confidential To summarize... Process Manufacturers are under pressure to maintain compliance and keep costs low, gain competitive advantage Process Leaders drive higher levels of compliance, better operational efficiency, and higher operating margins They do so by keeping ERP systems up-to-date! Over 80% of them are either on the latest release of ERP or only one behind
- 13. 13Copyright © 2015. Infor. All Rights Reserved. www.infor.comInfor Confidential Copyright © 2013. Infor. All Rights Reserved. www.infor.com 13 MEET INFOR VALUE ENGINEERING Learn more about upgrading your ERP: Download this comprehensive report fromAberdeen Group DOWNLOAD REPORT CONNECT WITH US Let Infor’s Value Engineering team help you take the first steps. The team of experts in business process and IT solutions can help you identify, quantify, and realize the tangible business benefits of embracing the new paradigm. Ready to get started?
- 14. 14Copyright © 2015. Infor. All Rights Reserved. www.infor.comInfor Confidential Copyright © 2013. Infor. All Rights Reserved. www.infor.com 14 Want to talk? We’re here to answer your questions. Chat Email Stay connected with Infor Manufacturing ©2015 Infor. All rights reserved. Call
- 15. 15Copyright © 2015. Infor. All Rights Reserved. www.infor.comInfor Confidential About Infor Infor builds beautiful business applications with last mile functionality and scientific insights delivered as a cloud service. With 13,000 employees and customers in more than 200 countries and territories, Infor automates critical processes and helps eliminate the need for customization through embedded industry domain expertise. To learn more, visit www.infor.com.