ERP & PRODUCTIVITY

Productivity is never an accident. It is always the result of a commitment to excellence, intelligent planning and focused effort.
– Paul J. Meyer

Same is applicable to the productivity in an organization. Till the time when there was no ERP package available or exists, each department in an enterprise had their own isolated software application which did not interface with any other system. These isolated framework could not synchronize the inter-department processes, lacks planning and hence hampered the productivity, speed and performance of the overall organization which led to issues such as loss and duplication of  data, lack of synchronization, incomplete understanding of the enterprise functioning, unproductive decisions and many more. On the other hand, ERP software is a concept to consider many departments and combining their unique systems into a single unit, enabling seamless communication between these departments, clients and management.

ERP implementation improves the productivity of a company’s employees and managers. It allows them to focus on strategy and managerial tasks while it manages back-end processes such as human resources, access control, supply chain/inventory management, financial/cash management, project management and product lifecycle management. Increased productivity reduces costs; improves system performance and processes, fault tolerance, and reliability; and eliminates wasting of time.

Also automates the routine, frequently-repeated manual tasks that waste staff time and often result in errors and re-work. As a result, they enable more efficient completion of day-to-day activities, so staff can perform their jobs better and get more work done in a shorter period of time. Additionally, with an ERP system, companies can understand which workflows are effective and which ones aren’t, so they can implement the kind of best practices and structured, formalized processes that will further improve staff productivity.

ERP software solution can also help organization in optimizing the use of their resources. It can help in drastically cutting down Material Wastages, Inventory shortages, delivery pilferages, and help in greatly improving productivity, Customer service, Quality Control, and client’s delivery etc. Thus helping in improving the overall productivity.

Modern ERP Solutions are highly customized, covers almost everything that you need to run your organization whether it may be small enterprise or a full fledge multinational firm. It includes the system starting from the employee’s entry inside the gate to final product to customer for a product manufacturing company. All facilities like customer complaints, accounting & finance, HR, sales & marketing, purchase, inventory, tax details like excise, sales tax etc including export & VAT documentation will also be handled by the system. To maintain all this it has high degree of security/access control. Ultimate result is that it helps in increasing productivity and better profits.

ERP helps in reducing operational costs…

Once implemented across various departments of an organization, ERP software solution help in greatly streamlining processes and reducing running costs related to the business. This major benefit is actually achieved through a better co-ordination among the various departments of an organization. This improved co-ordination actually helps in improving overall efficiencies of the business for which the ERP solution is being implemented. Some of the key benefits of this system include lower operating costs, better inventory management & better preparation for contingencies, reduced production costs and reduced marketing costs as well.

It helps in facilitating everyday Management…

The other key advantage of ERP implementation is the better Management of everyday schedules which is actually achieved by better control of the participating processes working in an organization. ERP’s major contribution actually comes in the form of a better database support, which helps the organization’s management in deciding about the course of action in a timely and organized manner.

Helps the management in Strategic Planning…

Resource Planning is indeed the most fundamental step towards an organization’s success in the business. And ERP is just about this very crucial factor of a business activity. It also helps in putting the available resources to their most optimum use, thus resulting in increased productivity of an organization. And a better planned system always create better scope of refined strategic planning by the management, who can do so with the effective support of ERP system’s solutions already in place in an organization.

In today’s dynamic business environment the key for success lies in customer satisfaction, through understanding customer needs, and providing quality goods and services in the shortest time possible. Hence making ERP a vital need of an organization which helps in improving its productivity and becoming globally competitive.