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How to calculate ROI for ERP?

A question frequently asked in connection with IT procurement, whether it is ERP, CRM or BI, is how benefits and advantages really can be measured?

How can we calculate return on investment? The SAP ROI (Return On Investment) tool tailored by HostLogic Kft. to the specific needs of the FMCG sector offers a practical answer to these questions. A few examples of the data used for calculating return on investment : productivity, optimization of stocks, accuracy of bonus calculation, reduction in administrative costs. Though the weight of parameters need to be determined on an individual basis, factors accumulated from previous implementation experience can give us a good idea of expectable return on investment. It is not at all evident that investment is returned more slowly for more expensive systems, and more rapidly for less expensive ones. 15 parameters have to be examined in order to get an accurate picture. SAP based solutions have been developed by HostLogic Kft. for a wide range of SME-s in several sectors during the past 15 years. Solutions developed for the food sector have been in use by many clients for years. Issues of food safety, special pricing for retail chains, recording of items in different measures are all given special attention. The system can also be linked directly to the IT systems of partners, suppliers and customers, and provide management support information.

Trade magazine - May 2008

15th May 2008

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