Since the economic concept follows that the scarce resources should be used in fulfilling the infinite needs, many business ventures attempt to ensure that any resource they invest is used in the best way possible. The development of a software that can be used to control and monitor the use of resources referred to as an Enterprise Resource Planning System (ERP) has reaped a lot of benefits for businesses. The ERP system allows from easier data collection and subsequent better decision making by the high levels of management. The ERP system produces high quality results which can be attributed to its ability to integrate all functions of the organization.
The ability of the Enterprise Resource Planning to support planning across all the relevant function is its most important role explaining why it even bears the word in its name. The planning function of the enterprise resource planning involves planning for the financial and human resources giving budgets of how the money can be used I the form of budgets as well as the particular times when the human resource input will be needed in different departments at different times. The system enables the organization to plan ahead thus eliminate the unforeseen events that can have potentially damage to the performance of the organization’s performance. This also because it forms the backbone of most other technological systems that than can be put in place.
The ability of the system to lower the operational costs allows the company to reduce the overall cost increasing the profits the company reaps as the system looks into all the process ensuring that the optimum resources are put into use for maximum returns. The Enterprise resource Planning system offers different functions in an organization to collaborate in information sharing which allows the for better visibility, explain why the system achieves these many benefits.
The use of the ERP system allows for increased levels of accuracy in data processing. It also increases the ability of data sharing across the organization which also increases the speed of data processing and decision making. The ERP system tracts all process in the supply chain right from order receipt and processing to operations and then demand fulfillment ensuring that the least amount of time is taken. the ability of the system to follow customers to tract they orders is of great consequence as it allows them to plan their needs accordingly as well have maintaining realistic expectation of when they can have their order met. This visibility increase the level of customer service achieved as they have to deliver promptly considering that the customers can track progress.