Can Erp Software Help To Management In Taking Right Decisions?

By Author: Elvira Filinovich
Total Articles: 143
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There are no two thoughts about the fact that ERP help or guide management in taking actions or decisions in a big way. ERP software actually is a decision support system, whether organization is large, medium or small whether it is spanning over vast geographical locations or confined to small region availability of relevant data at the time of making decision is huge advantage and that is what Enterprise resource planning software do. Enterprise resource planning software is a huge application that can cover all the aspects of any organization, this application uses one database where it collects the data from different places of input and allows it to be presented in desired format.

Large organizations have many modules or departments which function in tandem and are related to each other, one department needs information from another department to complete its tasks. Organizations working manually have slow movement of information from one department to another, this slowness gives reports to the management which are not actually updated. Management basing their decisions on un-updated reports can make a mistake whereas ...
... ERP help or guide management in taking action or decision based on updated, complete and accurate reports.

Another way in which Enterprise resource planning software helps or guide management in taking actions or decisions is by providing complete and consolidated information in real time. This can be understood by an example, in an organization working manually when new work order arrives, management may need to know status and availability of raw material. For this it will ask for an updated report from inventory department, but inventory department may not be able to include in their report the details of already scheduled jobs or pending jobs which will consume raw material from the present stock.

Hence the stock report is updated but is providing misleading information to the management. In case of ERP, management can get complete picture of present availability of raw material by one click, they can include present stock, scheduled jobs and pending jobs in one report which will give them actual availability of raw material and make a decision about purchasing a new lot. Consolidated reports in real time make ERP help or guide to management in taking right decisions.

Capability of making future projections is another huge advantage which makes ERP help or guide to management in taking actions or decisions. Through ERP management can get projections about rise or fall in the sales of particular product which allows them to utilize their resources in more profitable manner. Enterprise resource planning software can also suggest some features or dimensions which can be added in the product or services for increasing customer satisfaction or penetrate new markets for more business.

Reducing cost of production by saving unprofitable investments like excess inventory or improper use of human resource increase profit margins, all of these are other advantages which make ERP help or guide to management in taking actions or decisions. There are various other benefits which a properly implemented Enterprise resource planning software can provide and increase efficiency of any organization by helping management in taking timely and correct decisions.

Read about ERP Software Selection. Also know ERP Vendor Selection Criteria. Read about ERP Software Benefits.