Cloud ERP deployment is on the rise. With a growth forecast of 40% of overall ERP market share by 2020 (Allied Market Research), distributors are making tough choices regarding Cloud versus On-Premise ERP deployment. Looking past the obvious benefits like accessibility and scalability, the ultimate decision for many distributors selecting comprehensive ERP software comes down to the basic question of ROI (Return on Investment).
One of the biggest differences between Cloud ERP and On-Premise deployment involves upfront investment. Compared to On-Premise deployment, Cloud ERP provides the fastest path to implementation while avoiding the need to fund physical on-site servers and in-house IT support teams. A 2016 report by Nucleus Research found that Cloud ERP customers experience 43% faster ROI with ERP 50% less spent on personnel.
Why? Because the primary responsibilities of keeping the servers running, software updated, and data secure are handled by the Cloud vendor and not the individual distributor. By implementing Cloud ERP, distributors have the benefit of paying a fixed monthly management subscription instead of the large upfront capital outlay required with On-Premise deployment. These savings allow companies to allocate funds toward other key company initiatives like acquisitional expansion, growing the workforce, or any of the other hundred items on the budgetary wishlist.
To start a conversation on your ROI options and to learn the benefits of Cloud-enhanced ERP software, contact Distribution One. Our comprehensive ERP-ONE+ software suite delivers the accessibility, security, and pricing options that distributors need to compete and grow.
Every single customer has unlocked transformational improvements using Distribution One’s ERP-ONE software solution. Now it’s your turn!
“Out of the gate, our first cost savings occurred in accounting. What was previously a full-time job went down to just 2 hours a day. This change alone saved us $40,000 in year-over-year labor costs.”
Empire Bolt & Screw
“Distribution One has allowed us to deliver 30% more orders without having to increase our labor force.”
“ERP-ONE actually helps our business be more productive. We operate more efficiently because our software performs like a world-class product. And that’s not marketing hype. We trust in its reliability. It is one of the best decisions our company made.”
The Nut Place
“ERP-ONE tracks product costs and sales margins for us… that benefit alone has added 4% to our bottom line after the first year of implementation and has more than paid for the cost of ERP-ONE.”
Colorado Industrial Packaging
“Enhanced productivity, lower operational costs, higher service levels, and stronger customer relationships—it’s all been attained through our ability to provide continuous real-time data generated through the myriad of programs within ERP-ONE.”
-President & CEO
A-Jax Fasteners and Tools
“Having spent 30 years on the operations side of distribution using SAP and AS400 software, I have not encountered a better system than ERP-ONE. The efficiencies and expandability has allowed us to improve our sales by $500,000 per employee in a year.”
-Chief Operating Officer
“We had immediate visibility into which sales representatives were performing and which product lines were providing the best return for our business.”
On Time Supply
“The ability to manage orders online has created greater efficiency in their business and has delivered more flexibility in modifying and tracking orders. Changes to an order instantly cascade all the way through the terminals and the processing stations cutting production time by at least 15%.”