Type: Process Essays
Sample donated: Belinda Wilkins
Last updated: March 20, 2019
2 Benefits of ERP: In the current era there is a shortage of food, water andlife necessities in this world and the supply chain is becoming thin and morecomplex with each day passing. ERP can ensure the monitoring of process anddata all over the world.
People sitting here can monitor the progress andworking of a factory in different country. Any business in this world has manyattributes in itself from getting raw material, synthesizing, cleaning,packaging, delivering and balancing the cost of product this lengthy processrequires different kind of data bases and functions. If ERP is not there thanit all comes back to old times which used manual work. Taking notes andbalancing everything takes days while ERP is an automatic system doing itwithout your instructions. ERP enhances the interaction between employers and managersand between company and customers. It has operational benefit, managerialbenefit, strategic benefit and organizational benefit.
The collaborationbetween companies and departments of same companies becomes simpler, themobility of goods and material becomes streamline and forecasting of futureeconomy can be predicted using this solution. The crucial thing in any organization is making profit andmaintaining good quality. With 1 data base and a lot of high profile peoplelooking at it increases the probability of success and lower the cost of usingdifferent data bases which sometime hard to integrate with each other. Advantages of ERP system There are many advantages of theERP system and are as discussed as follows in detail below: 2 Data Sharing occurs in real time: While processing any data if the process is completedimmediately then it is called as real time.
The data sharing occurs in ERPreally fast and we have a great example like Bloomberg. All over the worldBloomberg synchronize at the same time keeping update to its customers aboutbusiness and share process. This ERP solution is the base root which createdGlobal Village. We can see online data sharing of factory material while we areon a different shore. Implement Industry best Process that is industry bestpractices: In today’s industry the pre configure ERP system is gainingits ground. For Example in the department of accounts and finance the ledgersusually do not provide a competitive advantage.
And wasting time and manresources on it takes big hole in companies. The pre configure ERP knowsexactly what it has to do 65-70%. The rest can be configured to do its work. More Managers see more data, leading to better oversight: Now suppose you are working in multinational company asmanager in DAMAM and your company has integrated ERP which takes data from 4different branches in city. If there are 4 different managers and 4 differentdatabases to match and see what company has gain or lost will it take more timeor less? Or take another view, with 1 database and 4 managers to give theiropinion on how to make progress and make the work flow more flexible is muchbetter than the first scenario. Hence if you have different eyes and mindsworking on 1 single thing then you will see the change in progress in realtime. The silo is a problem which comes from the variety of data.You can assume it is a different department which has the data from otherdepartments and it operates in isolation.
When a company is not able to unifyits data in easy way then emerges the silo problem. ERP is the best answer tothis problem eliminating the varieties of data and creating one unifieddatabase. In every department they have different styles, names and values for onething which creates confusion when compile in a single file but ERP can bringeveryone to stay on 1 single style and name.
Better Integration with supply chain partners: For example of fast food chain, a fast-food may have 50branches in a city and ERP enables their high management to see how much rawmaterials came and how much sales went high or low in one single day. This cangive time and idea to make preparation for tomorrow.