ERP ROI: how to calculate your system's return at the shop
Every investment has to pay for itself, and a management system is no exception. Calculating ERP ROI shows, in numbers, whether the tool is delivering the expected return in productivity, cost savings and better-organized internal processes. Here is what it means, how to calculate it and which gains go into the math.
What ERP ROI is and why it matters
ROI (return on investment) measures how much an investment returned relative to its cost. ERP is the enterprise management system, the software that centralizes information and processes. Calculating ERP ROI means assessing the results of implementing a system such as Onmotor, developed in Brazil, at your shop.
The calculation shows whether the system is delivering what you expected, such as higher productivity, lower operating costs and better customer service.
How to calculate ERP ROI
The formula is simple:
ROI = ((Gain − Investment) ÷ Investment) × 100
- gain: everything the system returned during the period, such as cost savings, lower inventory losses and extra revenue attributable to better organization
- investment: the total cost of the system over the same period, including subscription fees, implementation and training.
For example: if the shop invested R$ 15,000 in the system over a period and gained R$ 30,000, the calculation is ((30,000 − 15,000) ÷ 15,000) × 100 = 100%.
In other words, ROI was 100%: besides recovering the amount invested, the shop made a net gain equal to it.
The hardest part is measuring the gains. Compare indicators before and after implementation, such as average time per job, inventory losses, overtime and revenue.
Benefits of tracking ERP ROI
- lower operating costs: less overtime and more efficiency
- faster financial close: less rework consolidating the numbers
- better inventory management: purchasing aligned with usage and fewer losses
- higher revenue: more information to attract and retain customers.
Tracking these points brings more clarity to strategic decisions.
Invest in Onmotor
With strategic use of the system and careful analysis of results, the shop gains efficiency and profitability. See Onmotor's plans or talk to our team.