Benefits from ERP

Benefits form ERP is of two kinds, tangible and intangible.
Tangible benefits are those benefits which can be quantified in monetary terms and intangible benefits cannot be quantified in monetary terms but they do have a very positive and significant business impact.

TANGIBLE BENEFITS:

i. Lowering the cost of products and services purchased ;
ii. Significant paper and postage cost reductions ;
iii. Improves the productivity of process and personnel ;
iv. Inventory reduction ;
v. Lead time reduction ;
vi. Reduced stock obsolescence ;
vii. Faster product / service look-up and ordering saving time and money ;
viii. Automated ordering and payment, lowering payment processing and paper costs.

INTANGIBLE BENEFITS:

i. Can reach more vendors, producing more competitive bids ;
ii. Accurate and faster access to data for timely decisions ;
iii. Saves enormous time and effort in data entry ;
iv. More controls thereby lowering the risk of mis-utilization of resources ;
v. Facilitates strategic planning ;
vi. Uniform reporting according to global standards ;
vii. Improved customer response ;
viii. Increases organizational transparency and responsibility.