BCG Systems, Inc., Blog

Microsoft Dynamics GP: How Much Can You Save?

  

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When you hear users of Microsoft Dynamics GP speak about the application, what are the common themes that seem to always rise to the surface?  You likely hear about how it can:

• Provide the insights necessary to manage your business.  Increase financial transparency with integrated systems, shared data, and drill-down capabilities that give you visibility into your transactions and audit trails.
• Help improve decision-making processes to speed response time.  Help team members make critical business decisions using intuitive tools, workflows with built-in notifications and alerts, and automated approval routings. 
• Enable you to go beyond basic reporting with powerful self-service analysis and business intelligence tools.  With Microsoft Dynamics GP, your employees can be empowered to get the data they need, without requesting reports from other departments. 
• Identify and target your top customers to drive new sales opportunities.  Optimize your resources and improve end-to-end sales processes to identify the right prospects, provide better service to your best customers, and focus on new ways to increase your profitability.
• Optimize buying and inventory management to cut costs.  Streamline supply chain processes and inventory management – and reduce operational costs companywide – with the ability to track turnover and maintain the right stock levels. 

As enticing as these benefits sound, they are difficult for many organizations to wrap their heads around and quantify prior to implementing the application.  Just like with any other significant business decision, company leaders are looking to gauge their potential ROI during the software selection process.

Estimating Savings of Microsoft Dynamics GP

Luckily, Microsoft developed a tool that helps provide a better idea of your potential ROI with Microsoft Dynamics GP.  The Microsoft Dynamics GP Benefits Estimator is designed to calculate the potential annual savings you could achieve using Microsoft Dynamics ERP solutions. 

After identifying your industry sector, the benefits estimator guides you through a series of adjustable criteria, allowing you to drill down into the key benefits as identified by current customers and determine the estimated savings for your organization.  The tool calculates a realistic picture of what your organization could potential save through:

• Increased productivity
• Improved visibility
• Reduced administrative overhead
• Reduced inventory
• Improved supply chain
• Reduced cost of goods sold

A running total is made available so that users can see how potential changes and nuances in the savings variable areas affect overall estimated annual savings. 

Microsoft Dynamics GP Benefits Estimator Scenario

For example, take for instance you’re a distribution company.  You input the following variables into the savings calculator under the ‘Increased Productivity’ section:

• 8 employees will be using Microsoft Dynamics
• The average salary of a fully-loaded employee is approximately $40,000
• You estimate they will be 15% more productive using the system.

Based on just those variables, the sample organization is already looking at an estimated annual savings of $48,000.  Let’s continue on with a few more variables inputted into the calculator.  Under the ‘Improved Supply Chain’ section, let’s input the following:

• $15,000 spent supporting the supply chain.
• Estimated that this cost can be reduced by 3%.

Then, under the ‘Reduced Administrative Overhead’ section add in:

• An administrative staff of 2 people.
• The average salary of a fully-loaded administrative employee is $35,000
• And, we anticipate redeploying this staff by 100% after implementing Microsoft Dynamics GP.

Witness how the estimated annual savings grew to $90,450!  While this is all a hypothetical situation, with fictitious numbers added to the calculator, this is intended to give you an idea of how the tool functions and where you could potentially cut costs. 

Microsoft Dynamics GP enables you to make smart business decisions that have a direct impact on your bottom line – increasing margins and improving your cash flow.  Simple to learn and use, Microsoft Dynamics GP works with your existing technology and scales as you grow to deliver long-term value. 

As you work your way through the Microsoft Dynamics GP benefits calculator, take note of particular areas of interest or questions you may have about the system.  Then, reach out to our dedicated team of Microsoft Dynamics consultants who have the expertise to help you plan for success.  Ready for a closer look at Dynamics GP?  Access this recording of our recent ERP Shootout educational webinar.