Benefits of ERP
ERP was derived from Material Resource Planning (MRP) and Manufacturing Resource Planning (MRPII). The EPR system usually handles company’s logistic, accounting, distribution, manufacturing, procurement, sales order and shipping. On the other hand, EPR software control activities such as marketing, sales, finance management, production, delivery, quality management, delivery management and so forth.
1. Reduces operating costs
The major benefit of EPR is improved performance across all departments, thereby effective in reducing operational costs. This significantly helps lower marketing costs, production costs, and inventory control just to name but a few. On the other hand, EPR software integrates business activities across all departments.
2. Facilitates data management
Another primary benefit of EPR system is data management. The EPR systems provide better availability to information, which is beneficial in managerial control and decision making. EPR software tracks cots of business activities.
3. Promotes strategic planning
Strategic planning refers to systematic steps taken to assess resources and needs, which help to identify target audience so that management can set practical objectives and goals geared to success. EPR systems promote strategic planning, connect these plans to assets, needs, and desired results. In reality, strategic planning has been a challenge because it requires a complex mechanism.
Although EPR systems provide accurate information in regards to data management, EPR software may not be accurate which means companies would hire more personnel to distribute work better. Therefore, EPR systems are important in any business setting to ensure accurate data management in all functional departments.
EPR systems typically focus on better data management so that information is readily available to aid in managerial control. Moreover, it facilitate decision making based on the performance of all functional departments, thereby assist in the implementation of strategic planning.
Incorporating EPR systems is expensive as it entails hardware, software, implementation, training, consultants and so forth.