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Benefits of ERP Systems

When properly installed and operating, an ERP system can provide a firm with a significant competitive advantage, which can fully justify the investment of ume and money. The benefits of using an ERP system can take many forms, including (a) reduction in the number of errors through the use of a common database. (b faster customer response times. (r ) faster order fulfillment times, and (d) better overall communication within the organization For example. Hewlett-Packard's computer system's manufacturing and distribution facility for Europe. which is located in Geulstein, Germany, achieved significant improvements in operational performance after implementing SAP's ERP system. including on time delivery exceeding 95 percent, cycle time reduced by 80 percent. inventories reduced by 30 percent, operating costs reduced by 30 percent, and distribution cost reduced by 70 percent.