The Hidden Cost of Disconnected Systems
ERP Cost Comparison Grid
Before vs. After ERP
Category
Average
Annual Cost
(Without ERP)
Average
Annual Cost
(With ERP)
Potential
Savings
Manual Labor & Admin
$150,000
$90,000
$60,000
Order Errors & Returns
$40,000
$15,000
$25,000
Software Redundancy
$35,000
$15,000
$20,000
Inventory Overhead
$60,000
$35,000
$25,000
IT Maintenance Costs
$50,000
$25,000
$25,000
Employee Turnover
$75,000
$50,000
$25,000
Lost Sales (Visibility)
$100,000
$50,000
$50,000
ERP ROI Calculator
ERP Cost Comparison Grid
Before vs. After ERP
ERP ROI Calculator
Category
Average
Annual Costs
(Without ERP)
Average
Annual Costs
(With ERP)
Potential
Savings
Manual Labor & Admin
$150,000
$90,000
$60,000
Order Errors & Returns
$40,000
$15,000
$25,000
Software Redundancy
$35,000
$15,000
$20,000
Inventory Overhead
$60,000
$35,000
$25,000
IT Maintenance Costs
$50,000
$25,000
$25,000
Employee Turnover
$75,000
$50,000
$25,000
Lost Sales (Visibility)
$100,000
$50,000
$50,000
Assumptions:
- Based on mid-sized company (~50–250 employees)
- Manual and disconnected systems in place
- ERP includes financials, inventory, CRM, reporting
ROI Calculator Field
1. Annual Labor Costs (Current)
“Roughly how much do you spend annually on labor that could be automated—like manual data entry, spreadsheet tracking, or double-keying orders?”
Tip: Include admin, operations, and finance staff time.
2. Annual Labor Costs (With ERP)
“Estimate what your labor costs would be after automating routine tasks with ERP. This typically drops by 30–60%.”
Tip: Use a conservative estimate if unsure.
3. Redundant Software Costs (Current)
“What’s your total spend on disconnected tools like spreadsheets, accounting software, CRM, inventory tools, etc.?”
Think: QuickBooks, spreadsheets, point tools like ShipStation or HubSpot.
4. Redundant Software Costs (With ERP)
“How much would you continue spending after consolidating systems into one ERP platform?”
ERP often replaces 3–5 disconnected tools.
5. Order Errors / Returns (Current)
“Estimate the annual cost of incorrect orders, duplicate shipments, returns, and manual fulfillment errors.”
ERP often replaces 3–5 disconnected tools.
6. Order Errors / Returns (With ERP)
“How much could you reduce those costs with real-time data and automation?”
Companies often cut these costs in half with ERP.
7. ERP Investment Cost
“Enter the total upfront cost of your ERP investment, including licensing, implementation, and training.”
For small to mid-sized businesses, this may range from $50,000–$250,000.
ERP Readiness Checklist
- Strategic Readiness
- Operational Readiness
- Data Readiness
- Team & Resource Readiness
- Vendor Evaluation Readiness