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Lecture 4
Benefits of ERP
Improved Resource Utilizations
Better Customer Satisfaction
Improved Supplier Performance
Increased Flexibility
Reduce Quality Costs
Improved Information Accuracy & Decision
Making Capability
Reduction in Lead-Time
On-Time Shipment
Improved Resource Utilizations
The effective functionality of different modules in ERP
system like
Manufacturing
Material Management
Plat maintenance
Sales and distribution
Ensure that the
inventory is kept to minimum level
The machine down time in minimum
The goods are produced only as per the demand
And finished goods are delivered to the customer in most efficient
way
Better Customer Satisfaction
As ERP system produce goods at the flexibility of
make –to-order approach;
This mean that the customer will get individual attention and
customization of the product
With web-based ERP customer can
Place the order in customized manner
Track the status of the order
Make the payment
Get the technical support
Improved Supplier Performance
Provide vendor management and procurement support tools designed
to coordinate all aspects of:
Effective negotiation
Monitoring
And control procurement cost and schedules
Help organization to keep track of
purchased order
Requisition
And final procurement
Help organization in managing the
Supplier relation
Monitoring the vendor activity
Managing the supplier quality
Increased Flexibility
Help companies to remain flexible :
By making the company information available across
the departmental barriers
By automating most of the process
By enabling the company to react quickly to the
changing market condition
Can be adapted to the new technological change
Reduce Quality Costs
ERP system support benchmarking
Quality assurance data by all functional department
Provide tools to implement TQM program within the
organization
Easy to implement the quality standard due to
centralized database
Improved Information Accuracy &
Decision Making Capability
ERP ensure three fundamental characteristics
of information
Accuracy
Relevancy
Timeliness
Reduction in Lead-Time
Lead time : Time between placing an order and receiving
it
ERP help in automating the task of inventory control
Alert on quantity below the re-order level
When to release PO
When to procure the raw material
Integrate the inventory module with other module like
sale, marketing, purchasing , manufacturing and
production planning
ERP supports virtual transaction with the use of latest
technology like E-business, EDI, E-cash and so on.
On-Time Shipment
Able to change the mode of production from make-to-
stock to make-to-order
Allow greater customization and customer satisfaction
Contact US
lBusiness Name: Skyline Business School
lAddress: Hauz Khas Enclave,
lNew Delhi - 110 016, India.
lPhone: 91-11-26864848,:91-11-26866968
lE-mail: info@skylinecollege.com
lWebsite: www.skylinecollege.com
Thank You
I AM VERY THANKFULL TO YOU FOR GIVING YOUR
VALUABLE TIME.

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Benefits of ERP

  • 1. Lecture 4 Benefits of ERP Improved Resource Utilizations Better Customer Satisfaction Improved Supplier Performance Increased Flexibility Reduce Quality Costs Improved Information Accuracy & Decision Making Capability Reduction in Lead-Time On-Time Shipment
  • 2. Improved Resource Utilizations The effective functionality of different modules in ERP system like Manufacturing Material Management Plat maintenance Sales and distribution Ensure that the inventory is kept to minimum level The machine down time in minimum The goods are produced only as per the demand And finished goods are delivered to the customer in most efficient way
  • 3. Better Customer Satisfaction As ERP system produce goods at the flexibility of make –to-order approach; This mean that the customer will get individual attention and customization of the product With web-based ERP customer can Place the order in customized manner Track the status of the order Make the payment Get the technical support
  • 4. Improved Supplier Performance Provide vendor management and procurement support tools designed to coordinate all aspects of: Effective negotiation Monitoring And control procurement cost and schedules Help organization to keep track of purchased order Requisition And final procurement Help organization in managing the Supplier relation Monitoring the vendor activity Managing the supplier quality
  • 5. Increased Flexibility Help companies to remain flexible : By making the company information available across the departmental barriers By automating most of the process By enabling the company to react quickly to the changing market condition Can be adapted to the new technological change
  • 6. Reduce Quality Costs ERP system support benchmarking Quality assurance data by all functional department Provide tools to implement TQM program within the organization Easy to implement the quality standard due to centralized database
  • 7. Improved Information Accuracy & Decision Making Capability ERP ensure three fundamental characteristics of information Accuracy Relevancy Timeliness
  • 8. Reduction in Lead-Time Lead time : Time between placing an order and receiving it ERP help in automating the task of inventory control Alert on quantity below the re-order level When to release PO When to procure the raw material Integrate the inventory module with other module like sale, marketing, purchasing , manufacturing and production planning ERP supports virtual transaction with the use of latest technology like E-business, EDI, E-cash and so on.
  • 9. On-Time Shipment Able to change the mode of production from make-to- stock to make-to-order Allow greater customization and customer satisfaction
  • 10. Contact US lBusiness Name: Skyline Business School lAddress: Hauz Khas Enclave, lNew Delhi - 110 016, India. lPhone: 91-11-26864848,:91-11-26866968 lE-mail: info@skylinecollege.com lWebsite: www.skylinecollege.com
  • 11. Thank You I AM VERY THANKFULL TO YOU FOR GIVING YOUR VALUABLE TIME.