Competitive Advantage Using ERP
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Competitive Advantage Using ERP

Undoubtedly, contemporary businesses exist in a world where efficiency has been a key determinant of sustainable growth. There is no known single business that has achieved great success without streamlining its activities using enterprise resource planning (ERP) system that suits their business needs. ERP systems vary in functionality and customisation to fit every business goal. Despite the existence of similar firms, there are varying business needs based on existing processes and growth prospect.

Organisations have relied on ERP systems with proven rates of success in addressing every business goals from profitability all the way to corporate social responsibility programs. Below are some of the ERP examples that offer an in-depth analysis on how different ERP systems are implemented by companies to gain competitive advantage.

Engineering Firms Using ERP System for Project Costing and Profitability

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Nobody ever thought how engineering firms could be interested in implementing an ERP system in their operations. A majority of engineering firms had no idea which projects to pursue since they could not easily determine the project profitability. It is hard to determine the raw materials to be used at each stage, and this made it a tedious work to order anything they could think of even when it is evident it will only be needed for the last phase of the project.

Consequently, most engineering firms ended up incurring huge storage cost and sometimes made surplus purchases in the first project phase. Such blind actions compromised future purchases to implement other sections of the projects which do not require similar raw materials. Determining business profitability also became one of the issues that needed immediate redress to establish a system that will evaluate which projects would profit the firm more in a list of competing projects.

After successfully implementing ERP, engineering firms have achieved incredible growth and surpassed their business efficiency requirements. The company can quickly identify which projects to prioritise in order of profitability. It can also monitor raw materials on a daily basis without performing the tedious physical stock count. Furthermore, the firm has been able to control their finances and make timely payment to suppliers and meet its monthly wage bill on a single platform.

Manufacturing industries

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Manufacturing companies have been in the lead by embracing ERP systems that promises to take their business to another greener level and improve their workflow and processes. Top global manufacturers are now turning to ERP Systems to eliminate paperwork and introduce new interactive ways of electronically signing off documents.

The ERP system has enabled most manufacturing companies to go paperless and empower their executives to make good use of the available technology and devices to approve various processes and sign documents with the use of their smartphones, tablet, and email technology. The elimination of paperwork in the manufacturing sectors which deals with large files is a significant win for the future generation and the environmentalists. Company executives can perform their duties anywhere from the comfort of their smartphone or PC to ensure smooth work processes.

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The implementation of a suitable ERP solution has enabled the distributor to gain access to all the business processes under a single platform and achieve supply chain transparency which had been lacking for ages. The distributor can now handle customers order as they are keyed in by respective clients and make timely dispatch once the order is completed and closed. Furthermore, executives celebrate the unlimited reporting brought by the new ERP system. It does not have to wait until, month-end to have a sales report or handle delivery challenges.

Benefits from contemplation a Cloud ERP system are not limited to one page. ERP Implementation is a boost for any organisation, regardless of if its the organisations first ever transition into a ERP system, or if its a transition from Hard Drive software system to the Cloud.
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