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Information about the Use of Enterprise Resources Planning in organizations
Since the economic concept follows that the scarce resources should be used in fulfilling the infinite needs, many business ventures attempt to ensure that any resource they invest is used in the best way possible. Enterprise Resource Planning is an IT-enabled software that enables the organization make the best use the resources they have to achieve better results. Since this systems integrates different functions, it also allows for assimilation of data from all this functions allowing decision makes to make more informed decisions. It is an integrative system that is used for many functions in the business, an aspect that increases the quality of results it produces.
The systems main function is in planning for resources by all the functions that it is used it. This is because it covers all aspects that he owners of a business require to plan for from the financial aspect human resource planning, procurement planning , inventory management planning, payroll management among many more. The system enables the organization to plan ahead thus eliminate the unforeseen events that can have potentially damage to the performance of the organization’s performance. Its made in such a way that it encouraged the easy usage of other IT-related systems by providing the data input they require.
The ability of the system to lower the operational costs allows the company to reduce the overall cost increasing the profits the company reaps as the system looks into all the process ensuring that the optimum resources are put into use for maximum returns. The ability of the system to allow for easy sharing of information across different functions is among the reasons that allows it to produce all the benefits mentioned above.
Since the system reduces the involvement of people in data process, it is able to generate information that is more accurate at a faster speed. It also increases the ability of data sharing across the organization which also increases the speed of data processing and decision making. The system allow the organization to reduce the time taken to fulfill customers order as they can identify any delays in all the process involved prompting for faster accomplishment of the orders in case of delays. This system also allows the system track the progress of their order which make them set realist expectations of when they will be in receipt of their order. This in term results into prompt delivery of products and services allowing the business to achieve higher levels of customer satisfaction, which is usually the aim of any business.