Let Your ERP System Work for You – Part 2
ERP Benefits to Building a Roadmap for EMMP
Last week we addressed ERP System Basics so if you missed that be sure to check it out. This week we are going to discuss the benefits and see how an ERP System can help you build a roadmap for an Equipment Maintenance Management Program (EMMP) that can uncover hidden savings for your organization.
Equipment Maintenance can be one of the easiest ways to save when tasked with budget cuts.
- Using the ERP system and determining the equipment that is ideal for a program is a great exercise for organizations.
- Organizations can see the amount of equipment, the estimated discount and overall savings for the year without pulling a single contract. This helps strategically plan for the year.
- For example: One Remi customer was tasked with reducing their budget by 10%. After working with Remi, the organization was able to utilize an ERP System and the EMMP to find 2.5% of the 10% cost reduction. You can read more about our other customer successes here.
To understand if your organization is a good fit for using an ERP system to help build an EMMP, let’s first ask these questions.
- Do you have a fully implemented ERP system?
- Are you using commodity codes?
One of the critical keys to utilizing an ERP system and building an EMMP is the use of commodity codes. Commodity codes are a standard classification of codes for products and services used to detail where money is spent within a company. Using these codes tells Procurement Services what kinds of items are purchased most. Some of the most common are The National Institute of Governmental Purchasing (NIGP), United Nations Standard Products and Service Code (UNSPCS), and NAICS.
If you answered yes to the above two questions, then you are well on your way to building a plan for an EMMP. Remi can provide commodity codes for equipment that is ideal for a maintenance management program. With the report, we can easily evaluate the equipment and provide a quote.
Next week we will get into reporting on equipment based on commodity codes.