Traditional enterprise resource planning solutions are highly effective, but can be costly if a full-scale overhaul is necessary. Specific aspects of ERP software are typically fixed, such as computer hardware, ERP licenses and system software, but other expenses are variable during implementation. Project management and software consulting can add up on an hourly basis, and customized hardware development is an often under-estimated expense for companies, according to industry website Tech Target.

A complete revitalization for any business has its benefits, but costs are often a key indicator as to what a company can and cannot do in terms of new software installation. There are ways around this concern, though, as not all ERP systems are all-or-nothing investments. Cutting-edge solutions like Microsoft Dynamics NAV provide technologically advanced warehouse management systems without the headache of a full-scale revamp, as NAV software upgrades specifically targeted areas in need of improvement.

By addressing individual needs without breaking the bank on a high-end system, enterprises can save money both in the short and long term. By optimizing outdated software, companies can save costs and increase overall production efficiency, IT World suggests.

Learn how to define your ERP strategy by downloading the white paper entitled "ERP in Manufacturing:
Defining the ERP Strategy"
from the DMS website today.