What are benefits of an ERP system for businesses?

1. Integrate supply chain, production and sales of enterprise.

With expansion of enterprise competition, in order to cope with competition, enterprises not only need to master their own resource information, but also need to integrate supplier and merchant information to form a relatively complete supply chain and marketing information. to jointly cope with changing market and changing means of competitors' competition, and strive to achieve a collective competitive advantage to achieve goal of a win-win situation. With advanced information technology and ERP, enterprises have a technical platform to integrate value chain information, which solves problem of funds.

What are benefits of an ERP system for businesses?

Second, changes in managerial thinking.

The traditional management model emphasizes pre-forecasting, in-process control, and post-event auditing. The emergence of a business is divided into several links, and idea of ​​ERP is real-time tracking. Managers can track every step of a business operation, any time a problem is detected. Even with help of special software, system can automatically report problems. Company management has become a dynamic system, an interconnected process. Moreover, some of original business processes need to be reconfigured to reduce arbitrariness and increase standardization. Management information is becoming more detailed and integrated. For example, under traditional information flow system, it is practically impossible to obtain real-time sales information, and only after sales statisticians summarize sales information for a certain period of time every day or in each specified period, can a complete sales information. . In an enterprise ERP system, logistics and information flow are carried out simultaneously, and managers can receive sales information at any time and at any time at any time.

3. Changes in sources of information.

The ERP system combines three traditional streams, which are separate from each other, into one.

What are benefits of an ERP system for businesses?

Fourthly, ERP puts forward higher requirements for work of financial accounting.

New requirements have been put forward for financial accountants who have long used manual operations to process financial accounting or financial software that uses computer-simulated manual operations to process accounting.

1. Improving ability to work with a computer. Since all ERP operations are performed by computers, operators must have certain skills in working with computers.

2. Due to change in positions of financial and accounting personnel affected by source of financial information, a lot of information originally processed by financial accounting personnel will be expanded downwards, and workload of accounting department will decrease, and operation will be strictly regulated, personnel can do work even on a standard operation, and accountants are faced with task of downsizing.

3. The role of financial and accounting personnel has changed. The business directly involved in accounting personnel has decreased, but normal operation of service system has ensured that all links work in accordance with operating procedures, ensuring timely and complete accounting and other information, and also reducing misuse of information. The unfortunate consequences of this have become a new job for financial accounting personnel. At same time, due to changes in workload, financial accounting staff should realize role change as soon as possible. where possible, learn to use information provided by system for processing and analysis, and generate more valuable information.

In short, an enterprise ERP system is an effective and advanced management tool and idea, but we must understand what changes it can bring, including changes in business processes and management, as well as in operational thinking, and require managers' ability to accept new, adjust their mental preparation for management style. Once ERP system is working effectively, enterprise will reap immeasurable benefits