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Apart from many other banifits of ERP following are the most common one
Scalability: An ERP system is easily scalable. That means adding new functionality to the system as the business needs change is easy. This could mean easy management of new processes, departments, and more.
Improved reporting: Much of the inefficiency in operational work stems from improper reporting. With an ERP system, this possibility is eliminated as reporting follows an automated template system, allowing various departments to access information seamlessly.
Data quality: As compared with manual record-keeping or other traditional approaches, an ERP system improves data quality by improving the underlying processes. As a result, better business decisions can be reached.
Lower cost of operations: An ERP system introduces fundamental innovations in managing resources, which eliminates delays and thus reduces cost of operations. For instance, use of mobility allows real-time collection of data, which is indispensable to lowering costs.
Better CRM: A direct benefit of using a good ERP system is improved customer relations as a result of better business processes.
Business analytics: Having high-quality data allows businesses to use the power of intelligent analytics tools to arrive at better business decisions. In fact, many good ERP systems have built-in analytics functionality to allow easier data analysis.
Improved data access: Controlling data access properly is always a challenge in organizations. With an ERP system, this challenge is overcome with the use of advanced user management and access control.
Better supply chain: Having the right ERP system in place means improved procurement, inventory, demand forecasting, etc., essentially improving the entire supply chain and making it more responsive.
Regulatory compliance: Having the system in control means organizations can better comply with regulations. Further, the most important and recurring regulatory requirements can be built right into the system.
Reduced complexity: Perhaps the most elegant argument in the favor of ERP systems is that they reduce the complexity of a business and introduce a neatly designed system of workflows. This makes the entire human resource chain more efficient.
There are many more benefits of an ERP system, but these are the chief ones. Needless to say, a good ERP system is indispensable in the modern economic scenario.
An ERP Solution, if implemented successfully meeting the business requirements, allows an organization to have an integrated view of all business process which in turns allows efficiency and effectiveness in achieving business goals.
Once ERP is implemented, all business processes are integrated into a single unified system providing complete visibility and one unified reporting system. Employees are more efficient,deliver in less time, no redundant tasks nor data duplication;Collaboration is better across the whole organization, operation is more controlled, cost is reduced.
ERP must be dynamic and scalable enough matching the business growth and will form a centralized system with standard best-business processes on which are based on industry best practices.
Please note that implementing an ERP solution is not a straight forward process and requires managing and considering many aspects and requirements. After having the system stable, the organization will start measuring the advantages and ROI (return on investments) related to the ERP. This depends on many success factors.
Main advantage of using ERP is to enjoy different modules/applications at once with reduced cost and workload.
ERP Packages like SAP and Oracle have been developed based on standard business processes that any organization can use to standardize its internal business processes and organize its business units.
Unfortunately, most of the companies which implemented or planning to implement and ERP package do not benefit from this feature and stay on its current business processes which may be not compatible with the ERP functionality which may lead to failure in the ERP system implementation.
I fully agree with the answer been added by MR Kareem Saleh........Thanks.
