By using an ERP system that functions to unite / integrate business processes in a company and have the same database (common), then clearly the use of ERP systems will provide several benefits in general.
1. With one database used, each division or department will use the same information. This means increasing efficiency compared to each division having its own data. In addition, data accuracy can also be better maintained because the data is centralized. examples that are often encountered are, finished goods stock data are processed and owned by the Sales, the Warehouse also processes and owns the data and of course the Accounting section. Without centralized data, there will be 3 information about the finished goods data from each part and not infrequently the data are contradictory ( islands of information ). So it takes time to reconcile data before it can be used for decision making.
2. With an integrated system within a company, synchronization of processes between parts / divisions can be created, helping to standardize work processes, so that it will result in increased control.
in detail there are 5 benefits that can be obtained by using an ERP system.
1. Savings (Direct Saving Cos t)
2. Information Quality Improvement (Information Quality)
3. Team Productivity (Team Productivity)
4. Management Performance
5. Synchronization between IT systems and Corporate Strategy (IT and Business Strategic Alignment)
We will discuss each of the 5 benefits above in a separate section.