Implementation of an ERP system has many advantages both direct as well as indirect. The direct advantage is improved efficiency information integration which helps in decision making, faster response time to customer queries.
In indirect benefits better enterprise image, it also improve customer goodwill and customer satisfaction and soon.
Direct benefits:-
1. Improves the productivity of process and person
2. Recude the cost of production and services
3. Lead time reduction
4. Faster production
5. Automated ordering and payment
6. Inventory reduction
Indirect Benefits:-
1. Improve customer response
2. Support strategic planning
3. Uniform and standard reporting accorting to global standards.
4. Save time and efforts in data entry.
5. Can reach more vendors, producing more competitive bids.
6. Access to accurate data
7. Faster access to data for timely decisions.
ERP systems have three significant limitations:
1.managers cannot generate custom reports or queries without help from a programmer and this inhibits them from obtaining information quickly, which is essential for maintaining a competitive advantage.
2. ERP systems provide current status only, such as open orders. Managers often need to look past the current status to find trends and patterns that aid better decision making.
3. The data in the ERP application is not integrated with other enterprise or division systems and does not include external intelligence.
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