Benefits Of Erp Systems For An Erp System Essay

1093 Words Mar 7th, 2016 null Page
Advantages of ERP Systems

The ability of an ERP system to provide updated real-time data across all departments of a company is the number one reason why it’s so valuable. Each department has the same information, and can continuously add and update new information. (Russo, 2012) For example, before the creation of ERP systems, the sales transaction process was vulnerable to errors through redundancies and delays. After a customer order was placed, it would be routed through various departments where it would be manually entered into each divisions computer systems. Only until it was entered into the correct departments database was it manufactured or readied for shipment. As you can see, this process was long, tedious and prone to errors. An ERP system streamlines this process. Once an order is entered into the system, it does not need to be entered again. This information becomes available to all departments. If the products are not available when the order is placed, it notifies the manufacturing department to create more goods, after which it will signal the finance department to create an invoice. After the products are made, shipping is notified to ready the goods for shipment. This unified view of all business processes and operations allows companies to better understand their customers needs and demands, and eventually help to anticipate them. Using data analytics, statistical methods and graphs, ERP systems can create predictive charts that allow businesses to…

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