Benefits And Uses Of ERP Software

There are lots of benefits and uses of ERP software. The ability of ERP software to give the updated and correct information across various functions is what makes the software so valuable to companies.

Let's take an example to understand uses and benefits of ERP software for an organization. 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 was being entered and re-entered into the applications of the various departments. 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 organizations to better understand the demands and requirements of the customer. 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.

Apart from the benefits like the low cost of ownership and savings attained by the use of ERP software to manage multiple business functions, the usage and benefits of ERP software are much more. With a successful implementation of ERP software, top management can have a combined view of inventory, sales and receivables at the same point of time. It is important for companies to process information timely and in an effective manner. ERP software facilitates the management of information in real time and speeds up the information transfer without any problems. This leads to improved decision making. ERP software merge all the existing databases into a single integrated database. It often occurs that clients are directed from one department to another by staffs who claim that a particular task is not their responsibility.

With the use of ERP software, this will never be the case and the business processes will also be greatly improved, consequently it results in a more efficient, faster, and more streamlined company.

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 on the basis of 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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Keywords: erp software, use of erp software, uses of erp software

By: ROHIT J SMITH

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