When the head of an organization tries to evaluate the performance of his firm,he may come across many different versions of the truth. Each and every department from an organizations may have their own version of reason or truth to be presented which they may claim had led to the growth of revenue. It could be right or it could be wrong.
But if the organization had their ERP system in place, a single version of truth or the reason for the increase in revenue would have been emerged and there had no chance of mistrust of anyone. As everyone is using the same ERP system there was no chances of an undue claim by any department or a person. This is the one reason why an organization must implement an ERP system.
Having more information in one software system is another advantage of an ERP package. For instance, by integrating customer-order information ERP systems can become the place where the customer-order lives from the time a customer service representative receive it until the loading dock ships the goods and finance sends an invoice. By having this information in one system, rather than scattered among many different systems that can’t communicate with one another, companies can keep track of orders more easily, and coordinate manufacturing, inventory and shipping among many different locations at the same time. Yet another good reason to go for an ERP solution.
ERP systems come with standard methods for automating some of the steps of manufacturing process. Standardizing those processes and using a single, integrated computer system can save time, increase productivity and reduce head count. This is also a good reason to implement an effective ERP System.
ERP helps a smooth flow of manufacturing process which ultimately improves the transparency of order fulfillment process inside the organization. This can help to reduce inventories of manufacturing materials as well as help better plan of deliveries to customers, reduces the finished-goods inventory at the warehouses and shipping docks. Though to improve the flow of supply chain SCM is better software its integration with ERP system will contribute more functionality.
Standardizing HR Information with ERP system has its own benefit. In companies with multiple business units, HR may not have a unified, simple method for tracking employees’ time and communicating with them about benefits and services. ERP can fix that.
In the race to fix these problems, companies often lose sight of the fact that ERP packages are nothing more than generic representations of the ways a typical company does business. While most packages are exhaustively comprehensive, each industry has its quirks that make it unique.
Avion Technology, Inc.
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