ERP Software Solutions
The ability of an ERP system to provide the same up to date and accurate information across different functions is what makes the application so valuable to enterprises. Let’s take the example of a client’s order to understand this better: Before the advent of ERP applications, once a customer order was placed, it had to follow a paper trail from department to department – with details of the order being entered and re-entered into the applications of the different departments. This manual process was prone to errors and delays; till an order was entered into the application of a particular department, the goods could not be manufactured or shipped.
What’s worse is the fact that no one in the company really knows the status of a particular order at any given point of time. The result – lost orders due to frustrated customers who don’t know the exact status of their orders.
Compared to this, with an ERP system, a customer order is entered only once, and this information is available to all the applications across different functions. Once the order is entered, the application checks if goods are available in the inventory. If the goods are not available, it raises a purchase order which is subsequently used by the production team to manufacture goods, and by the finance team to issue an invoice. The produced goods go back into inventory, where they then become available for shipment. This single view of demand and supply enables organizations to better understand the needs and demands of the customer – and actually anticipate their requirements. This information can then be used to forecast future demands. This shortens lead times, reduces the overall cost of manufacturing, and ensures enhanced customer satisfaction.
The beauty of ERP is the fact that people in different departments can all see the same information, and update relevant information. As soon as one department finishes its part of the order, the ERP system forwards it to the next concerned department, which is defined in the workflow. To understand the status of an order, anyone in the organization can simply login to the ERP system. Web-based access can also be provided to customers who want to track down the order status.