1.

Explain the benefits of the ERP system.

Answer»

(1) Improved resource utilization:

Resources such as Men, Money, Material and Machine are utilized maximum hence increase productivity and profit.

(2) Better customer satisfaction:

Without spending more money and time all the customer’s needs are considered well. Because the customer is the king of the market. Nowadays a customer can track the status of an order by using the docket number through the Internet.

(3) Provides accurate information:

Right information at the right time will help the company to plan and manage the future cunningly. A company can increase or reduce production based upon the right information hence increase productivity and profit.

(4) Decision making capability:

Right information at the right time will help the company to make a good decision.

(5) Increased flexibility:

A good ERP will help the company to adopt good things as well as avoid bad things rapidly. It denotes flexibility.

(6) Information integrity:

A good ERP integrates various departments into a single unit. Hence reduce redundancy, inconsistency, etc.



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