Benefit evaluation and improvement measures after the implementation of footwear ERP

In today's fiercely competitive footwear market, more and more companies are choosing to implement ERP (Enterprise Resource Planning) systems to improve operational efficiency and management level. However, the implementation of an ERP system is not a one-time solution. Enterprises need to conduct a comprehensive evaluation of its effectiveness after implementation and take corresponding improvement measures based on the evaluation results to ensure that the ERP system can continue to create value for the enterprise.

1、 Benefit evaluation indicators

（1） Production efficiency

Order delivery cycle: Compare the average time from receiving an order to completing delivery before and after ERP implementation. The shortened order delivery cycle means that enterprises can respond to customer needs faster and improve market competitiveness.

Equipment utilization rate: Calculate the ratio of actual operating time to planned operating time of equipment based on production data recorded in the ERP system. The improvement of equipment utilization indicates that production resources have been more effectively utilized, which helps to reduce production costs.

Production plan achievement rate: measures the degree to which the actual production quantity matches the planned production quantity. A high production plan achievement rate indicates that the enterprise can accurately produce according to the plan, reducing production delays and resource waste.

（2） Inventory turnover rate

Inventory turnover rate: The calculation formula is cost of sales/average inventory balance. The improvement of inventory turnover rate means that enterprises can convert inventory into sales revenue faster, reduce inventory backlog, and lower inventory management costs.

Inventory accuracy: By conducting regular inventory checks and comparing the inventory data in the ERP system with the actual inventory quantity, the inventory accuracy is calculated. High inventory accuracy helps companies accurately grasp inventory situations and avoid production delays or sales losses caused by incorrect inventory data.

（3） Cost control

Procurement cost: Compare the changes in procurement costs of raw materials, components, etc. before and after the implementation of ERP. ERP systems help enterprises reduce procurement costs by optimizing procurement processes, implementing supplier management, and analyzing procurement data.

Production cost: Analyze the changes in labor costs, equipment maintenance costs, energy costs, etc. during the production process after the implementation of the ERP system. By implementing refined production management and optimizing resource allocation, enterprises can reduce production costs.

Management costs: Evaluate the impact of ERP systems on enterprise management costs, such as office expenses, human resource costs, etc. The automation and informatization functions of ERP systems can reduce manual operations and management processes, and lower management costs.

（4） Customer satisfaction

Customer complaint rate: Count the number of complaints from customers regarding product quality, delivery time, after-sales service, and calculate the customer complaint rate. Reducing customer complaint rates indicates that companies can better meet customer needs and improve customer satisfaction.

Customer loyalty: Measuring customer loyalty through indicators such as repeat purchase rate and customer recommendation rate. High customer loyalty means that a company has a stable customer base, which contributes to its long-term development.

2、 Improvement measures

（1） Continuously optimizing business processes

Continuously optimize business processes based on issues identified during the operation of the ERP system. For example, simplifying the procurement approval process and improving procurement efficiency; Optimize the production scheduling process to improve the accuracy and flexibility of production planning.

Regularly evaluate and improve business processes to ensure they align with the company's strategic goals and market demands.

（2） Strengthen employee training and management

Provide continuous ERP system training for employees to improve their proficiency and application ability in operating the system. The training content should include an introduction to system functions, operational skills, business processes, and other aspects.

Establish effective incentive mechanisms to encourage employees to actively participate in the application and improvement of ERP systems. Commend and reward employees who have demonstrated outstanding performance in ERP system applications.

（3） Deepen data analysis and application

Utilize the large amount of data accumulated by the ERP system for in-depth data analysis and mining. Through data analysis, enterprises can identify potential business problems and market opportunities, providing support for decision-making.

Establish a data-driven decision-making mechanism that applies data analysis results to various aspects of enterprise production, procurement, sales, etc., to achieve refined management.

（4） Strengthen system integration and expansion

Integrate ERP system with other information systems of the enterprise (such as CRM, SCM, etc.) to achieve data sharing and business collaboration. Through system integration, enterprises can improve overall operational efficiency and management level.

Expand and upgrade the functionality of the ERP system according to the needs of enterprise business development. For example, adding an e-commerce module to achieve online sales; Introduce intelligent manufacturing technology to improve the level of production automation.

3、 Conclusion

A comprehensive evaluation of the benefits of implementing ERP in the footwear industry and taking corresponding improvement measures is crucial for enterprises to ensure the continuous functioning of the ERP system. By evaluating indicators such as production efficiency, inventory turnover, cost control, and customer satisfaction, enterprises can understand the implementation effectiveness of ERP systems and identify existing problems. In response to these issues, enterprises can further enhance the application efficiency of ERP systems and provide strong support for their development by continuously optimizing business processes, strengthening employee training and management, deepening data analysis and application, and strengthening system integration and expansion.