How to Calculate ERP ROI (With a Simple Worked Example)
A practical method for calculating ERP return on investment: which benefits to count, which to leave out, how to estimate costs honestly, and a worked example you can adapt.
Solution · Operations
Overview
An ERP provides the shared data model: one view of demand, stock, inbound supply and commitments.
01Typical problems
Small demand changes cause large purchasing swings.
Containers in transit not visible to sales.
Freight and duty not in product cost.
Stock in the wrong warehouse.
02Capabilities
Forecasts combined with confirmed orders.
Rules by product and location.
Track POs and containers with expected dates.
Freight, duty and insurance allocated to products.
Ship from supplier or straight through.
Automatic orders between group companies.
03Workflow
Demand estimated from history and pipeline.
Replenishment proposals by site.
Orders placed with suppliers or transferred internally.
Inbound monitored with expected dates.
Landed costs applied on arrival.
04 — Technical notes
Lead-time variability is as important as average lead time. We measure supplier performance in the ERP so safety stock reflects reality.
Advanced forecasting can be added via integrations when built-in tools are not enough, but most gains come from clean data and disciplined replenishment rules.
Where it applies
Services
Insights
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FAQ
Basic forecasting is available; advanced statistical forecasting is often added through specialised tools.
Inbound shipments can be tracked against POs, with integration to freight forwarders where available.
Costs are allocated to receipt lines by value, weight, volume or quantity.
Next step
We will review your planning data and rules.