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New Total Economic Impact™ study finds Sage X3 delivers 213% overall return-on-investment within 6 months
[July 22, 2020]

New Total Economic Impact™ study finds Sage X3 delivers 213% overall return-on-investment within 6 months


Industry specific key findings include:

  • Sage customers in Manufacturing realize a 250% ROI and payback within 6 months
  • Sage customers in Distribution realize a 249% ROI and payback within 6 months
  • Sage customers in Services organizations realize a 225% ROI and payback within 6 months

ATLANTA, July 22, 2020 (GLOBE NEWSWIRE) -- Sage (LON: SGE), the market leader in cloud business management solutions, today released the results of its commissioned Total Economic Impact™ (TEI) study. Conducted by Forrester Consulting, the report quantifies the potential cost savings and business benefits enabled by Sage’s flagship ERP solution, Sage X3 for its medium sized customers.

Based on data gathered from customer interviews, the study found that:

  • A composite organization would experience a return on investment (ROI) of 213%, with that figure rising when applied to specific verticals where Sage shows specialism.
  • 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 Palmer Holland Chief Innovation Officer Charlie Laurie. “Since implementation, we have 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.”

In today’s unprecedented times, organizations are under increased pressure to prioritize digitalization to keep up with evolving government requirements and customer demands. Organizations must transform to become agile, responsive and efficient. Therefore, an increasing number are turning to enterprise resource planning to increse the availability of real-time data, better understand their customers habits, and streamline processes while, ultimately, fueling digital transformation.



Paul Struthers, Executive Vice President for Medium Segment, Sage, said:

“For industries that typically operate on low margins, technology investment must come with a rapid and significant ROI. As businesses navigate the new normal, they will increasingly seek ways to make their operations more agile, optimized, and efficient – Sage X3 is an ideal foundation for just this.


The customers we interviewed confirmed several key benefits  attributed to their investment in Sage X3 - this 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.”

Manufacturers Experience 250% ROI from Sage Business Cloud X3
Forrester interviewed nine Sage X3 customers across the manufacturing, distribution and services industries, each with considerable experience of using the platform. In recent years, these sectors have faced an imperative to digitize and innovate, which has become more pressing in the wake of Covid-19.

  • The growing need to improve productivity while increasing agility has been the focus for manufacturers’ digital transformation initiatives.
    • Sage X3 customers in Manufacturing realize a 250% ROI and payback within 6 months
  • Distribution companies are responding to market shifts by transforming their business to deliver faster service with higher margins.
    • Sage X3 customers in Distribution realize a 249% ROI and payback within 6 months
  • Meanwhile, the services industry is looking to technology to help personalize services and meet business goals as the customer experience takes central importance. 
    • Sage X3 customers in Services organizations realize a 225% ROI and payback within 6 months

Across all three sectors, Sage X3 users reported that the solution’s workflow automation and alerts functionality encouraged employees to follow policies and speed up approval processes. The platform’s documentation and office collaboration functionality also enabled customers to digitize and centralize their invoices on a single system. This made them more readily available to users across the organization.

A recent manufacturer survey conducted by the National Association of Manufacturers finds that more than 50% of manufacturers anticipate a change in operations due to Covid-19,” said Nancy Harris, Managing Director, Sage North America. “Sage X3 gives businesses the confidence they need to keep ahead of uncertainty and competition, while embracing digital transformation.”

Earlier this year, Sage X3 was recognized as a leader in SoftwareReviews ERP Data Quadrant and was named to the Constellation ShortList™ for Product-Centric Cloud ERP in Q1 2020.

For more information on Sage X3 customers and The Total Economic Impact™ Of Sage X3 Solution study, please visit here.

About Sage
Sage is the global market leader for technology that provides small and medium businesses with the visibility, flexibility and efficiency to manage finances, operations and people. With our partners, Sage is trusted by millions of customers worldwide to deliver the best cloud technology and support. Our years of experience mean that our colleagues and partners understand how to serve our customers and communities through the good, and more challenging times. We are here to help, with practical advice, solutions, expertise and insight.

Media contact:
Peter Olson
408-878-0951
peter.olson@sage.com 

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