Migrating to the cloud can boost efficiency and drive results.
In today's rapidly evolving manufacturing landscape, efficiency and cost-effectiveness are crucial. Organisations can effectively achieve these objectives by reducing or retiring their legacy platforms. This blog delves into the cost savings associated with this transition, highlighting the experiences of companies that have adopted Epicor Kinetic, a cloud-native ERP solution for manufacturing. Recently, Epicor commissioned Forrester Consulting to conduct the Total Economic Impact™ Of Epicor Kinetic For Manufacturing study. This blog reviews the findings from this study, exploring how Kinetic has enabled various organisations to achieve cost savings by replacing their on-premises systems.
Epicor Kinetic stands out as a cloud-native version of ERP for manufacturing. One of its most praised features is the ability to seamlessly move between the on-premises version to Kinetic on the cloud. This flexibility has allowed many organisations to eliminate costs associated with their legacy ERP tools.
Interviewees from various companies highlighted the substantial cost savings achieved by decommissioning their outdated systems. The transition to Kinetic enabled them to reduce
annual maintenance and platform support costs significantly. For instance, the CFO of a packaging products manufacturer shared, “We had an old system that we bought a million years ago when we were running on-premises. We paid maintenance every year, and it cost us resources to support. This was not appealing.”
Multiple interviewees echoed this sentiment, noting that their legacy ERP systems were not sophisticated enough to track all necessary metrics effectively. These older systems often required substantial resources for maintenance and support, which could be better utilized elsewhere.
To quantify the benefits of retiring legacy ERP systems, Forrester conducted a detailed analysis. The financial model created for this analysis assumes the following about the composite organisation’s process of retiring its legacy ERP systems:
A VP of IT from a measurement and test manufacturer explained, “We had systems that were at capacity or starting to show signs of strain. This included homegrown systems or less effective IT systems that were not meeting our needs.”
The transition to Epicor Kinetic has proven to be a cost-effective solution for many organisations. By retiring their legacy ERP systems, companies have achieved substantial savings in annual maintenance and support costs. These savings can be reinvested in other areas, driving further improvements in efficiency and productivity.
As they look ahead to changing future, reducing or retiring legacy platforms offers significant cost savings for manufacturing organisations. The ability to move seamlessly between on-premises and cloud-based ERP solutions like Epicor Kinetic provides the flexibility needed to eliminate unnecessary costs and improve overall operational efficiency. As more companies recognise the benefits of this transition, we can expect to see a continued shift towards modern, cloud-native ERP systems in the manufacturing industry.
