Enterprise resource planning (ERP) is a tool which helps in many aspects such as internal as well as external management information integration, finance planning, salesetc. ERP links all the departments across the company into a single centralized computer system and serves. With the help of ERP software a single integrated system can be created which combines various departments together, resulting in those various departments to share information and communicate with each other effectively. In today’s world ERP Software Company are establishing a stronger foothold on the market due to the increasing benefits offered with the use of ERP software. Some of these benefits are:
1. Ease of data access with data integrity
Any data can be accessed with ease using ERP.Peoples dependency for important data on other departments has reduced substantially. Information like stocks, sales margin, work in progress status, delivery due date, etc can be accessed by all departments independently:
Maintaining data integrity is also a key feature. ERP protect data integrity by controlling the unauthorized access of data.
2. Reduces time:
Time is a very important part of an ERP system. Huge amount of time can be saved for an organization with the help of ERP.As opposed to manual system where each department is heavily dependent on pen and paper, ERP rapidly reduces time per activity as data is easily accessible and there is no data redundancy hence there is high data availability. Thus time is saved for each and every department.
3. Reduction in data redundancy:
Data redundancy refers to duplicate or same data stored in a system. Redundant information usually reduces the efficiency of the total system. ERP in India helps in reducing data redundancy. When a company comes across any redundant data, they can easily change it.
4. Unaccounted Inventory loss :
Companies working on pen paper tend to suffer high inventory loss as the task of memorizing each and every item is next to impossible. This inventory loss can be minimized using ERP systems. Inventory loss can be reduced from 2% to less than 0.5% using ERP. With the help of ERP the company can easily track all its items along with the individual who is responsible for those items and their purpose also. Hence, unwanted inventory loss can be reduced by companies.
Customer Relationship Management (CRM) is one of the most critical and important of any organization. ERP provides better CRM by incorporating well planned and efficient customer service and technical support. ERP stores all data of a company, so that any and every information related to the company can be provided to the customer. More emphasis is given to service after sales. This is done mainly because after the sale and use of a product, a proper feedback can be given about the product. Hence if there are any drawbacks or failures related to the product, they can be easily modified and corrected. Thus, a better Customer Relationship is formed by a company using ERP system.