2 Benefits of ERP:
In the current era there is a shortage of food, water and
life necessities in this world and the supply chain is becoming thin and more
complex with each day passing. ERP can ensure the monitoring of process and
data all over the world. People sitting here can monitor the progress and
working of a factory in different country. Any business in this world has many
attributes in itself from getting raw material, synthesizing, cleaning,
packaging, delivering and balancing the cost of product this lengthy process
requires different kind of data bases and functions. If ERP is not there than
it all comes back to old times which used manual work. Taking notes and
balancing everything takes days while ERP is an automatic system doing it
without your instructions.
ERP enhances the interaction between employers and managers
and between company and customers. It has operational benefit, managerial
benefit, strategic benefit and organizational benefit. The collaboration
between companies and departments of same companies becomes simpler, the
mobility of goods and material becomes streamline and forecasting of future
economy can be predicted using this solution.
The crucial thing in any organization is making profit and
maintaining good quality. With 1 data base and a lot of high profile people
looking at it increases the probability of success and lower the cost of using
different data bases which sometime hard to integrate with each other.
Advantages of ERP system There are many advantages of the
ERP system and are as discussed as follows in detail below:
2 Data Sharing occurs in real time:
While processing any data if the process is completed
immediately then it is called as real time. The data sharing occurs in ERP
really fast and we have a great example like Bloomberg. All over the world
Bloomberg synchronize at the same time keeping update to its customers about
business and share process. This ERP solution is the base root which created
Global Village. We can see online data sharing of factory material while we are
on a different shore.
Implement Industry best Process that is industry best
In today’s industry the pre configure ERP system is gaining
its ground. For Example in the department of accounts and finance the ledgers
usually do not provide a competitive advantage. And wasting time and man
resources on it takes big hole in companies. The pre configure ERP knows
exactly what it has to do 65-70%. The rest can be configured to do its work.
More Managers see more data, leading to better oversight:
Now suppose you are working in multinational company as
manager in DAMAM and your company has integrated ERP which takes data from 4
different branches in city. If there are 4 different managers and 4 different
databases to match and see what company has gain or lost will it take more time
or less? Or take another view, with 1 database and 4 managers to give their
opinion on how to make progress and make the work flow more flexible is much
better than the first scenario. Hence if you have different eyes and minds
working on 1 single thing then you will see the change in progress in real
The silo is a problem which comes from the variety of data.
You can assume it is a different department which has the data from other
departments and it operates in isolation. When a company is not able to unify
its data in easy way then emerges the silo problem. ERP is the best answer to
this problem eliminating the varieties of data and creating one unified
database. In every department they have different styles, names and values for one
thing which creates confusion when compile in a single file but ERP can bring
everyone to stay on 1 single style and name.
Better Integration with supply chain partners:
For example of fast food chain, a fast-food may have 50
branches in a city and ERP enables their high management to see how much raw
materials came and how much sales went high or low in one single day. This can
give time and idea to make preparation for tomorrow.