Pushing the Boundaries of ERP in the Quest for Cost Savings

Top Performers Slash Costs While Demanding More From ERP Vendors


BOSTON, MA--(Marketwire - July 7, 2009) - In the 4th annual ERP in Manufacturing 2009 study announced by Aberdeen Group, a Harte-Hanks Company (NYSE: HHS), pressures to reduce costs continue to outweigh all other pressures driving ERP strategies in 2009. Top performing ERP implementations slash inventories by 20% and both administrative and manufacturing operational costs by 14%. Unwilling to sacrifice functionality for cost and ease of integration, manufacturers demand more than traditional features.

"Since 2006, Aberdeen has been measuring ERP usage based on the number of modules implemented in combination with the percentage of functionality available (from those modules) that is actually used. The number of modules implemented in 2006 and 2007 were identical and finally inched up slightly in 2008, only to drop in 2009. The percentage of available functionality also dipped slightly this year, to the extent that the weighted average ERP usage has declined. In looking only at these statistics, this appears to be a precipitous drop in usage," said Cindy Jutras, vice president and research fellow, Aberdeen. "However, when we look at it in conjunction with the adoption rates of ERP extensions, we see that implementation of functionality has expanded, not contracted."

The study goes on to reveal the adoption rates for each of the 10 extensions that appeared in both the 2008 and 2009 surveys grew by an average of 29%. These extensions include CRM, Supply Chain Planning, WMS, TMS, PLM, HCM, QMS, MES and Field Service and EAM. In addition, the best ERP implementations have even higher adoption rates and also show a strong preference for purchasing these solutions from their ERP vendor.

A complimentary copy of this report is made available due in part by the following underwriters: Epicor, Infor, Lawson, Plex Systems, and Tectura. To obtain a complimentary copy of the report, visit: http://www.aberdeen.com/link/sponsor.asp?cid=5893.

Visit Research.Aberdeen.com for additional access to complimentary Manufacturing Research.

About Aberdeen Group, a Harte-Hanks Company

Aberdeen provides fact-based research and market intelligence that delivers demonstrable results. Having queried more than 30,000 companies in the past two years, Aberdeen is positioned to educate users to action: driving market awareness, creating demand, enabling sales, and delivering meaningful return-on-investment analysis. As the trusted advisor to the global technology markets, corporations turn to Aberdeen for insights that drive decisions.

As a Harte-Hanks Company, Aberdeen plays a key role of putting content in context for the global direct and targeted marketing company. Aberdeen's analytical and independent view of the "customer optimization" process of Harte-Hanks (Information - Opportunity - Insight - Engagement - Interaction) extends the client value and accentuates the strategic role Harte-Hanks brings to the market. For additional information, visit Aberdeen or call (617) 723-7890, or to learn more about Harte-Hanks, call (800) 456-9748.

© 2009 Aberdeen Group, Inc., a Harte-Hanks Company
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Boston, Massachusetts 02210-1928
Telephone: (617) 854-5200
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www.aberdeen.com

Contact Information: Media Contact: Cindy Jutras Aberdeen Harte-Hanks (617) 854-5247 Cindy.jutras@aberdeen.com