ERP's role in increasing corporate efficiency

The pace of change in the current economic climate is quite rapid as many businesses transition from domestic and local operations to international activities. The modern business climate is characterized by a faster pace, unpredictability of the economy, high customer demands, and international competitiveness. Using technological advancements to boost performance has become vital due to the shifting economic conditions affecting how businesses operate. Businesses have embraced new technology to combine corporate processes in an effort to attain both efficiency and effectiveness in their operations, according to Beheshti & Beheshti (2010). One of the technological advancements that have been adopted by businesses to promote performance and meet the requirements of a fast-changing economic environment is enterprise resource planning systems (ERP). There is a need to understand the efficiency benefits of implementing an ERP to guide businesses decision-making.

Thesis: This paper reviews the ways enterprise resource planning systems aid in the improvement of efficiency and analyzes some of the considerations for effective ERP implementation.

Cost reduction

Real-time access to business information at all times

Integrates suppliers, partners, and customers

Reduced ordering and stocking costs

Fewer personnel on supply chain management

Reduced costs associated with multiple data centers

Improves analysis of business performance

Improves accuracy and speed of internal reporting

Offer advanced reporting and performance analysis

Better strategy development

Improve supply chain management

Improve visibility and insight to supply chain operations

Forecast inventory issues

Improve warehouse operations including tracking stock levels

Improving business intelligence and communication

Facilitate data collection and analysis

Enhance collaboration between departments

Inform decision-making

Considerations for effective ERP implementation

Risk management

Vendor selection

Quality management

Conclusion

References

Beheshti, H. M., & Beheshti, C. M. (2010). Improving productivity and firm performance with enterprise resource planning. Enterprise Information Systems, 4(4), 445-472.