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Do ERPs Improve Decision Making?

26 Feb

Do ERPs Improve Decision Making?

Yes Enterprise Resource Planning (ERP) definitely improves decision making for many reasons.  First I will explain what and ERP is.

ERP is a system which integrates internal and external management information across an entire organization.  Such information includes accounting, manufacturing, sales, development distribution, customer and suppliers relationships etc.  ERP uses an integrate system application to regulate this information.  This ultimately, and very importantly, enables information to flow between internal and external users.

Now you might be wondering how does ERP improve decision making?

ERP system application consists of many separate enterprise software modules, based on the needs and wants of an organization.  Each module focuses on a specific area of the business and, therefore, enabling organizations to choose appropriate modules to best fit their business. Examples of common modules are product planning, material purchasing, inventory control, distribution, accounting, marketing, finance and HR management.  ERP gives a central depository for all in the information, presenting an effortless flow of data.  Internal and external users can use this to make decisions.  It also enables individuals to easily compare the information in a common shared foundation.

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Also noteworthy, because ERP uses one application to control the organization, this increases efficiency, as well as reducing the complete total cost of ownership.  This reduces costs and improves profitability. 

So what are the benefits of ERP?

  • Data in one combined systems makes retrieving very easy and, thus, improve effective decision making
  • Integration saves time and money
  • Decisions can be made faster and with less chance of error occurring
  • Visibility across organization
  • Works in real time, therefore feedback is very fast
  • Consistency between modules
  • Improves organization adoptability.  There can be more flexible and cohesive, and enhances organizations internally and externally

There are many different types of ERP available.  One very good example to show how ERP improves decision making is Seradex Manufacturing Software. 

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Seradex Manufacturing Software is best fitted for manufacturing companies with 500 to 1,000 employees that have a desire to grow and improve effectiveness and customer service.  Seradex Manufacturing Software helps improves costs, productivity and processes.  It is brilliant for decision making all the information is in one centralized system.  Decision makers only need to look at this one system for guidance.  In turn, this betters customer relationship and keeps the manufacturing channel on track.

Seradex makes decision making extremely easy for manufacturing organizations.  It sorts customer order, materials, production and financial management.  It keeps decision makers on target with business encounters.  It keeps all data up to date to decisions can be precise with present time.  Furthermore it boost visibility, control and measurement.  For more information on Seradex and how it improves decision making, click http://www.seradex.com/support/erp_case_studies.php

Another further example is this youtube video based on Royal Crown Derby http://www.youtube.com/watch?v=O9RdfySb8P8.

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So overall it is evident that ERP are information systems which greatly help decision making.  It centralises all information and creates a medium for decision maker to extract information about the entire business.  Decisions are then up to data, enables efficiency and improves productivity for every organisation.  

References : 

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