Page 5 - CxOs ERP Guide

2. The Real Benefits of an ERP

 ERPs’ facilitate successful Supply Chain Management which is the key to any business success or
survival.

 The ERPs main contribution in this area is: Forecasting Demand, Ordering and Monitoring the
timely arrival of Raw materials, Production Planning and Scheduling, Quality Assurance through

lab testing samples, Manufacture, Sales, etc.

 Ensuring minimum sales loss on account of non-availability of inventory.

 Successful supply chain contributes to effective cash flow and working capital management. Any

business this is the most critical function.

 Having information at your finger-tips of a Sales man not visiting an outlet or not reaching his target
and drilling upwards to the group wise profitability is now possible.

 No longer are employees having critical information indispensable or their absenteeism an issue.

 When you expand the business, you can function in the same office space.

 Fraud can be easily detected as each transaction is updated on the go, with customer updated by email,
WhatsApp or SMS. In addition internal audit functions can take place daily.

 Reconciliation can be done daily on all inputs. Example credit sales versus debtors control account, bank
reconciliation, inventory etc.