The advantages of Enterprise Resource Planning over competitors
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The advantages of Enterprise Resource Planning over competitors

There are lots of benefits of ERP software. Enterprise resource planning software brings improvement and efficiency in business functions and processes. Good ERP software helps you to get transparency and availability of data throughout all business activities. ERP software can provide correct information at the time to the people for making effective decisions.

As these decisions would be derived from correct information, they will furnish positive results and boost productivity.

Let's take an example to understand uses and benefits of ERP software for an organisation. Before the arrival of ERP software, once a client order was placed, it had to follow a paper trail from one department to another department. The details of the order were being entered and re-entered into the applications of the various departments.

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This lengthy manual process was likely to delays and errors as until the order was not entered into the application of a particular department; the goods could not be produced or shipped.

But, with the ERP software, a client order is entered only once, and this information of order is accessible to all the applications throughout various functions. Once the order is entered a place, the ERP software checks whether goods are available in the stock or not. If the goods are not available in the stock, it increases a purchase order that is consequently used by the production team to produce goods, as well as by the finance team to issue an invoice.

The produced goods go into stock, where they become available for shipment. This single view of demand and supply allows the organisations to understand the demands and requirements of the customer better.

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This information can also be used to predict future demands, so this reduces lead time, the overall cost of manufacturing, as well as enhances customer satisfaction. The main benefit of ERP software is integrated information i.e. people in various departments can see the information and can update significant information.

Another benefit of ERP software is that an organisation can customise or modify the ERP software according to their needs. It adopts systems that deal with changing technologies. With the help of ERP software, an organisation can raise turnover by using same resources. ERP software is also helpful in achieving better efficiency in organisation reporting. This software also enhances financial management.

Cash in bank, cash in hand, trail balance, top supplier, top customer, balance sheet, ABC analysis, dead stock, WIP (work-in-progress) and other important reports can be prepared at any point in time with the help of ERP software.

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Enterprise resource planning software assists you to optimise your asset management as well as your human resource management. It makes the supply chain management more efficient as well as improves customer relationship management also. ERP software also facilitates data implacability and data security.

Another benefit is ERP software is that there will be decreased redundancy as all the information will be stored at a single integrated system that can be accessible to every department. The other benefits of ERP software include improved customer satisfaction by improved quality and shortened delivery times. All these benefits and uses of ERP software increase the productivity of the company and help to achieve the goals easily.
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