ROI of 213%: Discover the cost-cutting economic impact of Sage X3

Today’s manufacturing landscape is evolving rapidly, facing challenges driven by technological advancements, geopolitical tensions, and increasing sustainability demands.

Resilience is key

Forward-thinking manufacturers are increasing with cloud enterprise resource planning (ERP) systems, such as Sage X3. The expectation is for these solutions to help their businesses become future-ready.

They need the flexibility to integrate and scale, and have increased insight into their financial and operational intelligence so they can make decisions quicker with increased confidence in their planning and resource optimization.

The ability to drive better business outcomes with new levels of resiliency and agility are the expected byproducts.

We commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the return on investment (ROI) that manufacturers could expect when deploying Sage X3.

Based on in-depth interviews with Sage X3 customers, the study found that the overall ROI for Sage X3 is 213%.

Understanding the total economic impact of Sage X3

Sage X3 provides a cloud and on-premises ERP solution for manufacturing-specific operations that optimizes efficiency throughout the entire process, from financial and supply chain management to inventory and production management.

Based on customer interviews, the Forrester study found that:

• A composite organization would experience a return on investment (ROI) of 213%, with that figure rising for verticals in which Sage has a particular specialism, such as manufacturing management with a reduction in production costs of $335,725.
• Sage X3 users experienced benefits totaling approximately $2.4m against costs of $756,397 over three years, contributing to a net present value of approximately $1.6m.
• Customers also generated sales discount savings of $250,000 and saved 2,080 customer service hours a year, while seeing a 12% annual reduction in inventory levels.

“The capabilities available in our system through Sage X3 are world-class and I would put them up against any competitor,” said Sage X3 customer Charlie Laurie, Chief Innovation Officer at Palmer Holland.

Be future-ready

In such a dynamic climate, manufacturers are under increased pressure to prioritize digitalization to keep pace with evolving government requirements and customer expectations.

​​Businesses must transform to become more efficient, quick to predict, and respond, as well as gain new levels of resiliency in a continuously evolving economic environment.

An increasing number are turning to enterprise resource planning systems to gain actionable insight using real-time information for a better understanding of their costs, customers, and entire value chain.

For industries that typically operate on low margins, it’s essential that technological investment comes with a rapid and significant ROI.

As businesses navigate supply chain disruption, inflation, and rising costs, they will increasingly seek ways to make their operations more agile, optimized, and efficient. With its ultra-customizable capabilities, Sage X3 is an ideal foundation for this.

The customers interviewed confirmed several key benefits attributed to their investment in Sage X3.

These included time and labor savings in areas such as the ability to report monthly company financials using multiple local currencies, the ability to adjust inventory levels, and better cash management insight, and practices.

“Since implementation, we’ve experienced exponential growth during a time when competitors stopped growing organically. As a result of the process changes and data visibility from implementing Sage X3, we now have a single source of truth, where our team can make more informed decisions at pace.”

Innovation Officer at Palmer Holland.

Download the full Total Economic Impact of Sage X3 study to learn more.

Editor’s note: this article was originally published in March 2021 and has been updated for relevance.