Installing an ERP system has many advantages - both direct and indirect.The direct advantages include improved efficiency information integration for better decision-making, faster response time to customer queries, etc.
The indirect benefits include better corporate image, improved customer goodwill, customer satisfaction and so on. Some of the benefits are quantitative (tangible) while others are non-quantitative (intangible).
Tangible benefits are those measured in monetary terms and intangible benefits cannot be measured in monetary terms but they do have a very significant business impact.
Tangible benefits:
Improves the productivity of process and personnel
Lowering the cost of products and services purchased
Paper and postage cost reductions
Inventory reduction
Lead time reduction
Reduced stock obsolescence
Faster product / service look-up and ordering saving time and money
Automated ordering and payment, lowering payment processing and paper costs
Intangible benefits:
Increases organizational transparency and responsibility
Accurate and faster access to data for timely decisions
Can reach more vendors, producing more competitive bids ;
Improved customer response
Saves enormous time and effort in data entry ;
More controls thereby lowering the risk of mis-utilization of resources
Facilitates strategic planning
Uniform reporting according to global standards
For more information kindly visit: http://www.erppandit.com/erp-advantages.html
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Web site: http://www.erp-for-sme.com
Very well said. You have provided the most simplest but informative and helpful ways. ERP systems integrate all business management functions, including planning.ERP system provides the solid operational backbone.
ReplyDeleteThanks for sharing such a nice post on Benifts of ERP...