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What will be the benefits of an ERP system to my business?

There are five major benefits for your business in using an ERP system:

1. Integrated Financial Information

As a CEO, when you try to understand your company's overall performance, you will be faced with multiple versions of the truth. The finance department will have its own revenue figures, sales will have another set of numbers, and other departments will have their own figures depicting how they contributed to revenues. ERP, on the other hand, creates a single version of the true figures, and because everyone is using the same system, this version cannot be further questioned.

2. Integrated Customer Order Information

An ERP system serves as a place where the customer order resides, from the time a customer services agent receives the order until the loading dock ships the product and the finance department sends the invoice. By having the order information in one system, as opposed to multiple systems that cannot communicate with each other and where the data is scattered among in multiple formats, companies can monitor their orders better and coordinate the production, inventory and shipping functions among many different locations all at once.

3. Standardization and Acceleration of Production Processes

Organizations involved in manufacturing including businesses that have been involved in mergers and acquisitions, usually find themselves having multiple business units, computing systems and business processes. In such situations, an ERP system can pull together all these diverse entities under a single umbrella. It can provide a standard methodology for the diverse manufacturing methods. With standardization, all work flows make efficient use of time by utilizing a single IT platform, and productivity is increased while costs are minimized.

4. Minimization of Inventory

ERP allows production to function better and provides visibility into the order fulfillment taking place within the organization. This in turn minimizes the inventories maintained for in-system goods, allows better planning of customer deliveries, and reduces inventory levels in warehouses and shipment locations. You will need supply chain management products to improve your supply chain work flows, yet ERP systems will also go a long way in helping towards this goal.

5. Standardization of HR Information

Typical HR functions, such as communicating with personnel regarding benefits and services, may not be collected under a single umbrella, especially in organizations with multiple departments. ERP systems will help in providing detailed solutions in such cases, often times specific to each industry.

Source: http://www.cio.com/research/erp/edit/erpbasics.html