ERP provides sufficient benefits to the organizations in the form of ROI and cost saving. Some of the common benefits of ERP implementation are –
Integration: The integrated system enables the company to get the accurate data anytime anywhere and it prevents data redundancy and repetitions of data. Generally the companies keep a number of copies for the same data but when it is integrated to ERP it has to be entered once in the software and then it can be accessed from any department or business unit without any error. It prevents the expense on transportation of data from one department to other or from one manufacturing unit to another manufacturing unit.
Easy to manage company from across the borders: The new features of ERPs enables the companies to mange the data from any part of the world and the transactions in any part of the world is done as per the regulations followed by the region.
The performance, output, efficiency of employees and data can be seen from the reports of ERP and the employees need not move physically to get data from various departments to ensure the credibility.
Improved efficiency: Enterprise resource planning helps a company to increase production cycles in a day as the company can ensure the availability of raw material and workers, and the work is not delayed due to non availability of information. The companies working through automated system can easily meet their market demands and work fast as compared to other companies within do not have the facility of enterprise resource planning.
Easy management: One of the important ERP benefits is the easy management of resources. The organization can get easy analysis of data and the reports provided by the enterprise resource planning can be used to forecast production and do long term planning. The computer enables the management to take quick decisions at crucial time and prevent delays.
Accuracy and best practices: The automated system provides accurate data. There is no scope for manipulation in software because the complete flow of work and data can be viewed through a single system. The department head can see the timings of an employee and can see the entries made by one employee to the software in a day to find out the total work. It provides better visibility and helps in improving performance of the organization. It also ensures justified decisions are made by the management on the basis of data and it supports best practices.
ROI: One of the major ERP benefits is the improved ROI. The Company gets a better ROI because the software provides better visibility and helps in improving efficiency. It helps in saving time by reducing duplicate work such as duplicate data entry. It helps the employee to increase their abilities and reduces the non value added activities.
Enables quick communication: The software can be used for communicate with the customer and to provide better customer service. The immediate methods sent by the company enables the sales employees to get alert of the stocks and demands of a product in a manufacturing unit which prevents delays in delivering a service.
Reporting: The software can provide fast reports which are accurate and it can be used to take immediate decisions to benefit the company. This is another important benefit of ERP software.