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There are many types of benefits but the main one benefit which I feel practically is that :
ERP provides and integrate the informations of the organization with synchronization as per the needs and to organize and manage the financial and other business behaviours.
1) Integration of Company wide processes
2) Use of Best Practice Processes
3) Better Decision Making
4) Centralization of Data
5) Better communication between departments
6) Competitive advantage in some cases
7) Decreased Lead Times
8) Reduced Inventory levels
9) Increased Productivity
10) Overall direct cost reduction in production
1- Data integration
2- Accurate and in-time decisions
3- Transparency of management
agreed with arinjay and madam silva,,,
ERP integrates varied Organizatinal systems and facilitates error-free Transactions.
Provise ease to access information that help to make on time, efficient & effective decisons
Simply stated,successful ERP solution implementation should bring the company back to be one entity again overcoming organizational, technical and/or political barriers that cause fragmentation and silo/isolated islands syndrome that large organizations suffer from.
Away from the technical jargon and buzzwords associated with these topics such as ERP, CRM, SCM, DW/BI, .,..etc. I would like to speak simple English when talking about benefits expected from successful ERP implementation.
As an operational-level system, ERP will integrate and faciilitate cross-functional/cross-departmental day-to-day operations involved in providing the business-level services not only to external customers, but also to internal customers within the organizatoion and its extensions (partners, suppliers, contractors, dealers, resellers, ... etc)
This will siginifncantly improve efficienty/effectiveness within the organization and will result in overall enhancement of the services provided by the organization !
Streamlining processes and workflows with a single integrated system.
Reduce redundant data entry and processes and in other hand it shares informartioin across the department.
Establish uniform processes that are based on recognized best business practices
Improved workflow and efficiency
Improved customer satisfaction based on improved on-time delivery, increased quality, shortened delivery times
Reduced inventory costs resulting from better planning, tracking and forecasting of requirements
Turn collections faster based on better visibility into accounts and fewer billing and/or delivery errors
Decrease in vendor pricing by taking better advantage of quantity breaks and tracking vendor performance
Track actual costs of activities and perform activity based costing
Provide a consolidated picture of sales, inventory and receivables
i agree with Mr. Arinjay
The following are some of the main benefits organizations expect to achieve by implementing and ERP.
Grow the Business
Moving to a comprehensive, integrated ERP can give businesses the functionality they need to manage larger, more sophisticated operations. The right system will enable companies to increase their use of the system as their needs evolve by deploying all or part of the ERP functions, one step at a time, without having to start a new project from scratch. Or they can implement the ERP in a single location and for a limited number of users first and then progressively connect new users, either locally or remotely. With such a solution, organizations can manage their growth while minimizing additional costs.
Improve Efficiency
The right ERP can improve efficiency by enabling integration, automation, improved decision making and better collaboration:
Integration Provides Coherent Business Information
The right ERP can integrate all management processes into a single, coherent information system and distribute information in real-time throughout the company wherever it is needed. By sharing data throughout the system, the ERP eliminates the need for manual data re-entry, which improves productivity, eliminates lost time, reduces errors, and provides reliable, coherent data.
Automation Eliminates Manual Processes
ERP solutions can automate business processes while providing alerts for exceptions to allow staff to focus on unusual events. Greater automation means companies can either reduce staffing levels (costs) or redeploy staff to other activities (e.g., do more with less).
Business Intelligence Improves Decisions and Efficiency
An ERP system that includes Business Intelligence (BI) tools and integrated information eliminates manual processes needed to produce reports. Better reporting capabilities allow employees to make better, faster, data-driven decisions. Companies can also use BI tools to analyze business processes to further improve process efficiency.
Better Collaboration
The ability to collaborate electronically with partners, suppliers and/or customers enables organizations to manage end-to-end processes with customers and partners in a more efficient and cost-effective manner. Organizations can provide better and faster response to partners and customers. Partners and customers have the opportunity to participate in the businesses’ processes and do part of the job, which reduces a company’s labor requirements and costs. For example, an organization can authorize a supplier under contract or blank order to connect to its business process management system remotely and be automatically informed of a reorder requirement triggered by a low stock alert.
the ERP can offer to an organisation :
- customizing the full process and workflow.
- organizing and management of the financial (you can have clear data for all your financial accounts)
- making the organizational structure with all business partners and with differents roles to access to the ERP in different ways.
