Page 123 - DCAP302_ENTERPRISE_RESOURCE_PLANNING

Unit 6: ERP Benefits

4. Lead to Improved Performance, better Decision Making, Competitive Advantage notes
5. Replace a Multiplicity of different systems and database

6. Allows replacement of disparate systems
7. E.G. Exxon Mobile used ERP to replace 300 different systems
8. Increase organizational real time information flow
9. Process Re-engineering—Update Old Process
10. Foundation for new processes, such as E-procurement

11. Lays Foundation for Electronic Commerce

Did u know? ERP systems are evolving to incorporate new technologies, such as
e-commerce, data warehousing, and customer relationship management.

6.9 Better customer satisfaction

Customer satisfaction means meeting or exceeding customer’s requirements for a product or
service. Assessment of the degree of satisfaction is usually made on at least three measures:
1. Whether the product or service includes the features that are most important to the
customer.
2. Whether the company can respond to the customers demands in a timely manner, a
criterion that is especially important for custom products and services.
3. Whether the product or service is free of defects and performs as expected.
ERP systems have proved that they can produce goods at the flexibility of make-to-order
approach without losing the cost and time benefits of made-to-order operations. This means that
the customer will get individual attention and the features that he/she wants without spending
more money or waiting for long periods. Also, with the introduction of web enabled ERP systems
customers can place the order, track the status of the order and make the payment sitting at
home. The customer could get technical support by either accessing the company’s technical
support knowledge base or by calling the technical support. Since all the details of the product
and the customer are available to the person at the technical support department, the company
will be able to better support the customer. All these are possible because of the use of the latest
developments in information technology by the ERP systems and go a long way in improving
customer satisfaction.

Task “ERP systems not only improve the flexibility of the manufacturing operations,
but also the flexibility of the organization as a whole.” Discuss with the help of suitable
example

6.10 on-time shipment

Today, companies must be able to deliver customer specific products with the lead-time of
standard, off-the-shelf products. They must be able to change the mode of production from make-
to-stock to make-to-order, yet retain the cost and time advantages of off-the-shelf products. Today,
ERP systems provide the freedom to change manufacturing and planning methods, as needs
change, without modifying or re-configuring the workplace or plant layouts. With ERP systems,

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