The basic function of ERP is to reduce repetitive work, speed up processes, reduce paperwork, improve accuracy, improve integration of departments, improve strategic communication within organization and provide fast reports.
In various industries ERP serves many different functions -
1. In manufacturing industry it can be used to speed up the whole process of manufacturing which includes processing information, prompt response for demands, increased follow ups, meet deadlines and easy delivery products to the customer.
2. In transportation sector it improves communication and online transactions.
3. In sales and distribution, it can improve the access to required goods.
4. In service industry it eases the process of communication with clients, and helps in increasing customer base.
5. In construction sector it is used to design architecture of the buildings and also to analyze various designs of a construction project before finalizing a design.
6. In hospitals it can be used to improve service and have accurate billing and related information, and it is also used in educational institution to easily maintain the database of students and faculty members.
The newly facilitated ERPs are used in government, non-government, scientific and business organizations, and it enables easy, fast and accurate work.
Organizational processes can be grouped in various categories which include management, operation and planning. Enterprise resource planning enables an organization to ease the functions and improve coordination between the various departments and work units. With the advancement in technology, call centers use automation features to ease the process of making calls and technology can be used to modify or update data from any part of the world. ERP makes use of technological features to enable an organization to function easily and stay ahead of its competitors.
System reduces operation costs because it provides the manufacturing unit with the updated data and the data can be used to define the required inventory.
1. The expense on store and maintenance of inventory is reduced and also the wastages can be reduced.
2. The company defines the total funds required by a manufacturing unit before starting the process and the improved coordination of the departments prevent delay in subsequent processes.
3. It reduces the overall production costs. Since the data can be updated fast and on time, the production cycles can be increased.
4. It also reduces cost on providing customer support and communication.
Eases day to day management
Automation helps can organization to prevent delays on decision making regarding any departments. Even in the companies that have multiple units located in remote geographical locations, the data can be centrally managed by the management, and it can be updated from any location. The management can get updated information in minutes and the information can be used to take quick decision.
ERP enables easy planning
Strategic planning is a process in which an organization can define its targets based on the market needs and in the planning process each and every step is calculated carefully. Software can provide the funds required for each of planning, the targets and market needs. The software can use previous data of the organization to make future plans and provide updated market information to enable an organization to change its strategies.