Benefits of Enterprise Resource Planning
                     BENEFITS OF 
ENTERPRISE 
RESOURCE 
PLANNING
Introducti
on
ERP systems integrate all business 
management functions including planning, 
inventory/materials management, engineering, 
order processing, manufacturing, accounting 
and finance, human resources etc.
SOURCE: www.geeksforgeeks.org
Direct and 
indirect 
Advantage
Installation of an ERP system has many 
advantages. The advantages may be both 
direct and indirect. The direct advantages 
include efficiency improvement, integration of 
information, faster response time to customer 
queries, etc.
SOURCE: www.geeksforgeeks.org
Key 
Benefits
• Integrating and sharing of information across 
different departments.
• Reducing redundant data entry and 
processes.
• Guarantee for the security of organization 
data.
• Better communication across various 
departments.
• Improving workflow and security.
SOURCE: www.geeksforgeeks.org
Informatio
n 
The Imonst imtpoertangt bernefiat ist priomootion of 
integration. It is because it has the ability to 
update data between nrelated business functions 
and components. Also the people involved in a 
project are interlinked to each other, thus it 
help in improvement of productivity.
SOURCE: www.geeksforgeeks.org
Reduction 
of Lead-
Lead-Time is thTe elaipmsed timee between placing 
an order and receiving it. By reducing Lead-
Time organization should have an efficient 
inventory management system, which is 
integrated with the purchasing, production 
planning and production departments.
SOURCE: www.geeksforgeeks.org
On Time 
Shipment 
ERP system are designed to help your company 
to reduce data transfer time, reduce errors and 
increase design productivity. By using steps of 
ECO i.e. Engineering Change Order, ERP system 
automatically implements change in production 
database. Thus by using these, an ERP system 
ensures on time delivery of goods to customers.
SOURCE: www.geeksforgeeks.org
Reduction 
in Cycle 
It is time betwTeen ithme placeement of order and 
delivery of product. There are two types of 
situations; one is make-to-order and second 
one is make-to-stock. 
In both cases cycle time can be reduced but 
more time is saved in make-to-order case 
because in this ERP system save time by 
integrating with CAD/CAM systems.
SOURCE: www.geeksforgeeks.org
Better 
Customer 
Satisfactio
ERP system is capablne of producing goods in a 
flexible way with consideration of time and cost 
management. It means will get individual 
attention and get services without spending 
more money or waiting for long period.
SOURCE: www.geeksforgeeks.org
Increased 
Flexibility
Product flexibility is type of ability of the 
operation to efficiently produce highly 
customized and unique products. ERP system 
not only improve flexibility of manufacturing 
operations, but is also improve flexibility of 
organization.
SOURCE: www.geeksforgeeks.org
Real-time 
capabilitie
The biggest advantagse o f an ERP system based 
on its real-time capabilities and the ability to 
see what is going on with the organization as it 
happens.
SOURCE: www.geeksforgeeks.org