Potential benefits about the utilization of ERP system
Nowadays, ERP system are being increasingly adopted by organizations of any kind and size, in order to avoid technical obsolesce and create sustainable competitive advantages. Some experts note that most multinational firms are using ERP software packages and even more small and midsize companies are on the route of adopting them.
ERP system acquisition and implementation generally enhance productivity and working quality, since the system offers standardization and simplification in multiple, complicated operational procedures across the company . Moreover, information can easily be transferred, shared and exchanged among users who are working at different business divisions. In general, the literature has identified the following potential benefits of ERP system implementation:
- improved coordination across functional departments;
- increased efficiency in doing business;
- reduced operating costs (lower inventory control cost, lower production costs, lower marketing costs, lower help desk support costs);
- facilitation of day-to-day management;
- rapid access to information for decision making and managerial control; and
- support of strategic planning (through the planning of available resources).
BY: Ziwei Wang 1452383