Benefits of ERP for Operations

Cost Reduction – Cycle Time Reduction – Productivity Improvement – Quality Improvement

 

Cost Reduction

  • Labour cost reduction: the automation and removal of redundant processes or redesign of processes lead to full time staff reduction in tasks in each business areas including: customer services, production, order fulfillment, administrative processes, purchasing, financial, training and human resources.
  • Inventory cost reduction in management, relocation, warehousing, and improved turns.
  • Administrative expenses reduction in printing papers and supplies.

 

Cycle time Reduction

Measurable cycle time reductions are found in three kinds of activities that support customers, employees and suppliers.

  • Customer support activities in order fulfillment, billing, production, delivery and customer services.
  • Employee support activities in reporting, month-end closing, purchasing, or expense requisition, HR and payroll and business learning.
  • Supplier support activities in speed payments and combined multiple orders with discount gained.

 

Productivity improvement

  • Products produced per employee or labour cost
  • customers served per employee or labour cost
  • Mission accomplished per employee in non-profit organisation.

 

Quality Improvement

  • Error rate reduction
  • Duplication reduced
  • accuracy rate or reliability rate improvement
  • Ease of customer data access and customer inquiries thus resulting in improvement of customer experience

 

Click Here for Benefits of ERP for Management, Business Strategy, IT Infrastructure and Organisation

 

To learn more about ERP Solutions & Aspera Solutions 

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