The Effect Of ERP Implementation On Enterprise Cost

Nowadays,with the increasingly enhanced trend of economic globalization and integration, the competition of enterprises around the world is becoming increasingly fierce.In order to maintain our edge in market competition,more and more companies adopt ERP(Enterprise Resource Planning,ERP) to improve their competitiveness,especially manufacturing enterprises. As a new management model and management tools,ERP implementation is becoming the most effective strategetic way for domestic enterprise to restructuring resource,to reducing costs and achieving competitive advantage.For the development and application of ERP,what the enterprises are most concerned about is that the implementation of the ERP will give enterprises the cost-benefits.Firstly,in this paper implementation of the ERP itself is defined not only as the context of resources allocation,but the important factors to influence the outcome and efficiency of the resources allocation.Implementation of the ERP contributes to promote the effective allocation of resources and maximize efficiency.Then,companies will have an impact on the cost of all the factors into fixed,macro,management and technical aspects of the four.It analyzes the influence of ERP systems on enterprise cost from the enterprise cost management theory and practice,also on the enterprise cost benefits from the cost-effectiveness of the qualitative and quantitative aspects.Secondly,with the financial public data of manufacturing sector in Shanghai and Shenzhen listed company,this paper tests whether the ERP system can reduce business costs through descriptive statistics,multiple regression analysis,as well as matching analysis.Finally, proposed increase in the implementation of ERP systems should pay attention to the principle of cost-effectiveness.The results show that:this theory center that ERP systems can reduce the enterprise cost lies in the realization of the implementation of ERP systems and applications,if not properly used, which may bring the opposite results.Enterprises can not blindly start the implementation of ERP systems,particularly those who want to get cost competitive advantage through the implementation of the system.Before the implementation of ERP systems,they should have a clear prior understanding to this point,it is necessary to determine the goal to drop the reasonable cost.