Enterprise Resource Planning
In a bid to grow in the next five years, GBI manufacturing company can benefit by implementing enterprise resource planning (ERP) software. ERP is management software that is compatible with any business need. ERP is essentially software that integrates all the facets of an organization in terms of receiving, processing, storage and management of data from every stage of a business operation. This business management software enables the assimilation of all the functions of an organization such as planning, manufacturing, sales, marketing, procurement, human resource and finance (Practices, Implementation Best ...view middle of the document...
Due to the real time managerial capabilities of this software, the amount of stock in store can be monitored easily. This makes it easy to manage storage costs. Costs associated with lost sales are also reduced as all sales are tracked easily. Moreover, costs associated with errors in recording are significantly reduced as this software improves accuracy of data entry. Other departments easily detect an error done by one department. In addition, the company saves on costs of maintenance, as all departments maintenance needs are similar.
Through integration of business operations, a company utilizing ERP software saves a lot of time. For example, it becomes easy to locate a transaction through this software. Records pertaining to stocks are also stored online and thus cases of defective products are easily managed by software that could otherwise be hard to locate. A lot of time is saved thorough department-to-department communication. As every department is able to locate a transaction on real time basis, time wasted through phone calls to confirm about business transactions is reduced. ERP software enables ease of communication between clients and the company.
ERP saves a lot of time and money in a company’s business operation thereby enhancing improved productivity. As a result, a company using this software records increased sales and ultimately increased profits.
Improved visibility and decision making
ERP software enhances improved visibility of all operations undergoing within a company. This enhances improved decision-making.
ERP software enables smooth and coherent workflow from one department to another. As such, business transactions are completed quickly besides enhancing traceability of transactions. This increases departmental collaboration.
ERP enables the unification of analysis and reporting of company statistics and data.
Centralized and secure storage of information
ERP enhances centralized storage of vital company’s information thereby enabling implementation of policies that improve secure information storage.
Due to efficient management of all organizational activities using ERP, the quality of products and services are improved thereby increasing customer’s confidence in the company’s operations (Shang & Seddon 1005-1014).
Specific ways in which the technology can improve GBI’s performance and growth in the future
GBI being a manufacturing company is well placed to benefit from a multitude of benefits offered by ERP software. These benefits include:
Integration of business operations
GBI has various departments such as manufacturing, procurements, sales, marketing, human resource and finance. As such, every activity performed by an individual department is clearly visible from other departments saving costs and time. Specifically, GBI can benefit from reduced costs associated with purchase of computers and servers because GBI needs...