An ERP solution like Oracle ERP can maintain information and business processes for various business functions such as Manufacturing, Supply Chain Management, Financials, Human Resources and Customer Relationship Management. Prior to the notion of ERP Systems, each department within the organization had its own computer applications. This resulted in a bunch of information that still had to be integrated from different computer applications, thus delaying the decision-making process. With an ERP system on the contrary, information stored in its centralized database can be accessed in real time.
ERP improves an organization's performance:
The important feature of an ERP system to provide the same updated and accurate information across the various departments/functions is what makes it actually valuable to the business, since people from different departments can all see the same and relevant information. An ERP has a well-defined work-flow that allows a business process to be implemented by one department and forwards it to the next department in charge, while streamlining and storing the process-generated information at each step. An example of this is, for instance, the status of an order. Just by logging into the system, anyone can view the same and updated information about the order. It's important to also point out that an ERP system removes manual and repetitive processes that are otherwise prone to errors and delays. Let's take the same example of a customer order. In old manual systems, the details of a customer order had to be entered many times across the various departments before it could be processed and shipped by a particular department. In an ERP system, the information is entered only once and made available to all departments. This has the advantage of shortening lead time, and ensures customer satisfaction. With a good ERP system implementation, top management can have a consolidated view of relevant information (for e.g:customer and sales data) as a base to anticipate future business requirements.
Other significant benefits of a good ERP include:
Reduced operating costs: This is an immediate benefit from implementing a good ERP, such lower inventory control costs, lower production costs and lower marketing costs since there is no duplication of information.
Standardized business processes: A good ERP product should be designed and implemented around standard business processes based on industry best practices. This allows organizations to have a global view of its business, as business activities are streamlined and consistent in the system.
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