Benefits of ERP
ERP systems are great to help your company streamline your processes. In order to have a successful implementation of your ERP system, you need to make sure you have your information in line to help make the process swift. It doesn’t matter whether or not your company deals with paper or plastics, ERP provides your company with the right system and performance that you need. ERP can help your company reduce operating cost and it is a benefit when running company analytics. It improves the coordination of your company’s process into one streamlined process where everything can be accessed through one enterprise wide information network.
A D V E R T I S E M E N T
organizational processes fall into three levels - strategic planning, management control and operational control. Even though much of ERP success has been in facilitating operational coordination across functional departments, successful implementation of ERP systems benefit strategic planning and manegment control one way or other.
Help reduce operating costs
ERP software attempts to integrate business processes across departments onto a single enterprise-wide information system. The major benefits of ERP are improved coordination across functinal departments and increased efficiencies of doing business. The immediate benefit from implementing ERP systems we can expect is reduced operating costs, such as lower inventory control cost, lower production costs, lower marketing costs and lower help desk support costs.
Facilitate Day-to-Day Management
ERP programs are being developed and updated all the time. With so many different types on the market, companies should make sure they do due diligence and try out different packages before choosing one to use. Some of the programs even offer mobile capabilities so that you can always have a finger on the pulse of your business activities from your pda.
Support Strategic Planning
With real time capabilities and the ability to be able to see what is going on with your company as it happens, ERP systems are handy when you deal with high volume. With an ERP system, your company will never have inventory shortages or wasted time spent transferring files. You can test out an ERP system before buying it and see how it will work with your business.
Strategic Planning is "a deliberate set of steps that assess needs and resources; define a target audience and a set of goals and objectives; plan and design coordinated strategies with evidence of success; logically connect these strategies to needs, assets, and desired outcomes; and measure and evaluate the process and outcomes." (source) Part of ERP software systems is designed to support resource planning portion of strategic planning. In reality, resource planning has been the weakest link in ERP practice due to the complexity of strategic planning and lack of adequate integration with Decision Support Systems (DSS).