An Empirical Study On Influence Of Enterprise Manufacturing Costs And Benefits By Application Of ERP Systems In China

Through the survey of ERP implementation status of the company, which listed on the Shanghai and Shenzhen stock markets in recent years, we found that the implementation of ERP system has become a trend, especially in the manufacturing industry, more and more manufacturing company adopted ERP systems to enhance their competitiveness, obviously, this is stark contrast to the public opinion, because people think that the successful rate of ERP implementation is so low. In this paper, through the empirical investigation for the expectations that implementation of information technology which can reduce costs and improve earnings, to analysis the situation of ERP system implementation of manufacturing enterprises in our country, and also to analysis the possible reasons why they adopted the ERP systems ineffectively by comparing.From the analysis results, we can see that the implementation of ERP systems for enterprises can really increase the sales, and improve the revenue, but for the application of ERP systems which expected can significantly reduce the operating costs, through the paired comparison analysis, we found that after the implementation of ERP systems, they can significantly reduce the operating costs, however, compared with the data of the enterprises which never adopted the ERP systems, the operating costs is abnormal, it is possible that the implementation of ERP systems can lower the operating costs, but which is high-growth brought by the implementation, the paper argues that this kind of phenomenon is a matter of how long time the ERP system already been implemented, and it should detect this kind of reducing is an ongoing phenomenon or not, in long-term. In the beginning of the introduction of ERP system, companies will increase the initial costs and expenses significantly, however, from the view of the survey results, there are still many manufacturing companies have chosen to apply the systems firmly, this is because the ERP system really can bring the benefits for the enterprise, such as improving the market share, expanding sales, and get more competitive obviously, which are the reasons why more than half percent of the manufacturers have been applied or planning the ERP system actively. Before implementation of the system, enterprises should recognize that to apply the ERP systems will significant increase the operating expenses clearly, even if with the growth of the implementation period, the operating costs will be lower, it also requires companies to maintain a good cash flow, otherwise it will affect the business process activities or the broken of their own capital chain, just because of the problems about system maintenance, then it becomes the failure case of ERP system implementation.