What are the tangible and intangible benefits of ERP system
Tangible benefits are those measured in monetary terms and intangible benefits cannot be measured in monetary terms but they do have a very significant business impact.
ERP offers two options for making payments. Firstly, the cheque feature allows you to print a cheque for a vendor immediately, but not against a specific bill, which is comparable to the bill centric payment cycle found in accounts payable.
It is possible for you to verify the transaction by attaching a support document. And secondly, it is possible for you to record and post cheque you write through a chequebook. The system can also smoothly handle the transfer of funds from one cash account to another.
Improves the productivity of process and personnel
Lowering the cost of products and services purchased
Paper and postage cost reductions
Lead time reduction
Reduced stock obsolescence
Faster product / service look-up and ordering saving time and money
Automated ordering and payment, lowering payment processing and paper costs
Increases organizational transparency and responsibility
Accurate and faster access to data for timely decisions
Can reach more vendors, producing more competitive bids ;
Improved customer response
Saves enormous time and effort in data entry ;
More controls thereby lowering the risk of mis-utilization of resources
Facilitates strategic planning
Uniform reporting according to global standards
To say in short, ERP systems integrate all business management functions, including planning, inventory/materials management, engineering, order processing, manufacturing, purchasing, accounting and finance, human resources, and more.
ERP software programs are being developed and updated all the time.
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