1) Integrated Financial Information:
- As CEO tries to understand the companies, overall performance, he may find many difficulties, and the different version of truth. Finance has it own set of revenue numbers, sales has another version, and the different business units may each have their own versions, for how much they contribute to revenue. ERP creates the single version of the truth that can not be questioned because everyone is using the same system.
2) Standardize HR Information:
- Especially in companies with multiple business units, HR can get a unified, simple method for empowering the employees together their own information and give themselves service portal with which to communicate.
3) Standardize & speed up manufacturing processes:
- Manufacturing companies – especially those with an appetite for mergers & acquisition, often find that multiple business units across the company make the same widget using different methods and computer system. ERP system comes with the standard system for automating some of the steps of a manufacturing process. Standardizing such process using the best practices, and using the single, integrated computer system can save time, increased productivity and reduced man hours.
4) Reduce Inventory:
- ERP helps the manufacturing process how more smoothly, and it improves visibility of the order fulfilment process inside the company. That can lead to reduced inventories of the materials used to make products (WIP inventory) and it can help users better plan deliveries to customers, knowing what is lying in which stories reducing the finished goods inventories at the warehouses and shipping docks. To really improve the flow of your supply chain.
5) Integrated Customer order Information:
- ERP system can become the place where the customer order lives from the time a customer services representative books it until the loading dock ships the merchandise and finance send an invoice. By having this information in one software system, rather than scattered among many different system that can’t communicate with one another, companies can keep track of orders more easily, and co-ordinate manufacturing, inventory and shipping cost among many different location simultaneously
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