Summary: The specific benefits an ERP can bring to an organization.
Enterprise resource planning (ERP) systems are typically used to replace a disparate set of individual systems strung together in a complex and clumsy manner. These isolated systems often operate on different software and hardware, and utilize separate data warehouses. Managing the interfaces between the various systems is a task in itself. Thankfully, ERP packages offer a solution to this while bringing specific and tangible business benefits.
ERP systems make it much easier to integrate systems across multiple locations.
Most ERP systems run on a single database, which means there is only one data warehouse to manage and maintain. This single database system also means there are fewer points of failure in your system as a whole.
The processes that go into fulfilling a customer order are automated and enhanced by a successful ERP system. It creates a software flow chart for each step in the process to give direction to the whole.
Every employee in the chain sees the bigger picture and becomes more accountable for their role in order fulfilment.
As all department systems are connected by the ERP solution, they can gain access to essential inter-departmental information. Thus, any employee can see the information required to fulfil an order.
This leads to better levels of customer service because employees have complete information in front of them. This means that they are better able to answer questions and take decisions on the spot.
ERP systems can speed up the manufacturing process through automation in areas such as procurement and production planning. This can help reduce the costs of carrying inventory and increase inventory turnover.
This additional automation of processes means that fewer employees are needed to run the business. This means the company can save money by having a leaner structure.
Simplified supply chain operations mean you gain more responsiveness in terms of both quality control and timeliness.
Your manufacturing product cycle becomes faster — the process from designing to manufacture-readiness takes less time thanks to better information flows.
ERP systems enable you to remain competitive by taking advantage of the latest technologies in your market segment.