Advantages of enterprise resource planning, Operation Management

Advantages of ERP

1.Inventory Reduction: Through this process it is possible to procure a component as it is needed thereby avoiding cost of carrying it and excessive safety stock is inventory.

2. Reduction in Production and Delivery Lead Time: By coordinating inventories and procurement and production decisions the delay in production is avoided.

3. Realistic Commitment : By using ERP the production department can give the marketing department timely information about delivery times to customers thus maximizing customers service.

4. Increased Efficiency: The information provided by ERP encourages and supports production efficiencies.

5. Modular Approach: With a modular approach ERP vendors are on the right track because it would be complex to cover all of the separate functions in a single module. This approach enables ERP users to implement only those modules that they consider would add maximum value to their business.

6. Decision Support: ERP assists in the dissemination of information of all the functions of a business to the top level management and enable them to take the right decision at the right time .

7.Distributed Computing: The move toward client server technology or distributed computing means using multiple small computers instead of single large ones for a business computing needs. ERP software programme are small enough to run on personal computers. Additionally since many important and inventory decisions ten to get made in different locations and at different levels in an organization ERP and its toolbox of software functions is a good fit for distributed computing.

Posted Date: 3/2/2013 2:53:33 AM | Location : United States







Related Discussions:- Advantages of enterprise resource planning, Assignment Help, Ask Question on Advantages of enterprise resource planning, Get Answer, Expert's Help, Advantages of enterprise resource planning Discussions

Write discussion on Advantages of enterprise resource planning
Your posts are moderated
Related Questions
Discuss corporate strategy and ethical issues surrounding a human resource strategy cantered around hiring software engineers on work visas at equivalent salaries or sourcing engin

Watch the video, how to perform a SWOT Analysis, and then conduct a SWOT analysis using the Starbucks' Global Quest 2006: Is the Best Yet to Come? Case provided in the Course Mater

Resources: University Library, Kudler Fine Foods Virtual Organization Use the Virtual Organization link on the student website to access additional company information on Kudler

In a single period model if shortage cost is four times excess cost then the optimum service level is what percent?

List five advertisements from various types of media that attracted your attention. Discuss the characteristics that determined your selection

What causes conflict in organizations? Many of the organizational behaviour topics that have been addressed in the class thus far include the opportunity for conflict to emerge. Fo

Why do some firms no longer rely only on competitive bidding when awarding purchase contracts?

Using Pareto analysis, categorize the products into Classes A, B, C, based on usage value. Would this approach be useful for categorizing and controlling stock levels of all the pr

A local nursery greens uses 1560 bags of plant food annually. Green works 52 weeks per year. It costs $10 to place an order for plant food. The annual holding cost rate is $5 per b

1. How much of an impact does "maturity" level of the industry or company have on strategy? 2. Can you be innovative in a mature industry? 3. Can you be conservative in an in