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How can ERP improve a company's business performance?

ERP improves the ways businesses take orders, manufacture goods, ship products, and bill for goods.  Businesses see value from ERP software.

ERP is often referred to as back-office software. ERP takes a customer order and provides a software road map for automating the different steps along the path to fulfilling the order. When a customer service representative enters an order into an ERP system, he/she has all the information necessary to complete the order (the customer’s credit rating and order history from the finance module, the company’s inventory levels from the warehouse module and the shipping dock’s trucking schedule from the logistics module,). Users in these different departments all see the same information and can update as necessary. When one department finishes with the order, it is automatically routed via the ERP system to the next department. To find out where the order is at any given point, you need only to log into the ERP system to track it.

The order process moves like a bolt of lightning through the organization, and customers get their orders faster and with fewer errors. ERP can apply that same magic to the other major business processes, such as employee benefits or financial reporting. With ERP, the customer service representatives are no longer just typists entering someone’s name into a computer and hitting the return key.

The ERP screen makes them businesspeople. It flickers with the customer’s credit rating from the finance department and the product inventory levels from the warehouse. Did the customer pay for the last order yet? Will we be able to ship the new order on time? These are decisions that customer service representatives have never had to make before, and the answers affect the customer and every other department in the company.

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