The Total Economic Impact of Sage X3: Significant Labor and Operational Cost Savings

Finding the right ERP to drive growth and success in your business can be challenging. All businesses experience growth pains at one point or another, whether it be inaccurate data reporting, lack of communication due to disjointed systems or large time investments due to missing tools or processes.

Just like with any other management solution, there are costs associated with implementing an ERP. There is labor involved in designing an implementation plan as well as deploying the ERP. Depending on the solution there are cloud fees or hardware, database and operating system license and maintenance fees. Once everything is set up there will still be costs for ongoing administrative labor. So businesses can be left wondering, is it worth investing money into an ERP? Will the costs outweigh the benefits and if so, when?

Financial Impact of Sage ERP X3 Confirmed by Study

In January 2016 Forrester Consulting conducted a study to evaluate the potential financial impact of Sage X3 within organizations. They conducted in-depth interviews with longstanding Sage X3 customers and in doing so were able to assess the cost versus benefit associated in an investment in the ERP. The results? They found consolidated evidence of significant labor and operational cost savings.

Return on Investment (ROI) and Cost Savings

In a press release Sage reported the results of the study, which “revealed that a composite organization of Sage X3 achieved a 177% ROI, $1.7M from cost savings over three years and an expected payback period of only five months”. Return on investment, or ROI, measures the amount of return on an investment relative to the cost of the investment. An ROI of 177% illustrates that despite the costs involved in implementing and operating the Sage X3 solution ($620,870), the organization saw a remarkable return on their investment in a very short period of time, leading to a net present value (NPV) of $1.1M.

Forrester’s Study reported money saved in (but not limited to) the following areas:

  • Financial Management labor for reporting
  • Purchasing
  • Sales management
  • Inventory management
  • Customer service
  • Manufacturing management
How Sage ERP X3 Provides such High ROI

Sage describes Sage X3 as the “next generation global enterprise business management solution”. Cost savings combined with access to improved tools & processes allow companies to re-distribute resources to where they need them, which in turn, helps drive growth. The Cloud Solution offered for X3 requires minimal IT investment and resources to maintain it, while providing quick access to real-time data from any device with a browser – from desktop computer to tablet to cell phone.

This flexibility only increases the ROI as X3 offers built-in unique functionality for different industries, such as traceability & allergen tracking for food manufacturers, quality control mechanisms for process manufacturers, detailed inventory management for distributors, and many more, making it a valuable solution for countless enterprises. Specifically designed to help companies grow faster, it integrates finances, inventory, purchasing, manufacturing, sales, and customer service, allowing many processes to be automated & simplified. The integration and unification of department’s gives customer service access to an accurate and comprehensive view of real-time information. This gives them the tools to provide the best service possible for your business, all of which only increases the overall ROI of the business management solution.