ERP
ERP Benefits
Enterprise resource planning (ERP) integrates external and internal management information across an entire organization, embracing financial accounting system, production, purchase, sales, inventory, and human resources management. ERP links all the departments across the corporation into a single centralized computer system. It is not so easy task to cover the entire company in a centralized computer system; however, ERP software unites various departments together into a single integrated system, so that the various departments can share information and communicate easily. There are abundant benefits of ERP system followed by,
- Higher quality, shortened lead times, reduced time-to-market, and higher productivity can help to increase sales and market share, and improve customer service as well as margins.
- Analysis and simulation capabilities can help companies to forecast future and react more effectively to change demand, supply chain distribution, and competitive actions.
- It Improves efficiency of workflow
- Yield collection is more faster through better visibility into accounts and fewer billing errors
- It reduced vendor pricing by having better advantage of quantity breaks and tracking vendor performance
- One of the most instant benefits from implementing an ERP is reduced operating costs: such as lower marketing costs, lower production costs and lower inventory control costs by avoiding duplication of work. An ERP delivers opportunities for cost reduction and value-added tasks leading to increase margins.
- Organizations can track inventory levels on a daily basis due to the centralized nature of ERP systems including present inventory and future consignments. This clarity can enable organizations to run their enterprise in accordance with their strategy and also controls their working capital requirements to a great extent while empowering them to make quick decisions to track opportunities.