How ERP improves a company's business performance
ERP automates the repetitive tasks involved in performing a
business process-such as order fulfillment, which involves taking an order from
a customer, shipping it and billing for it. With ERP, when a customer service
representative takes an order from a customer, he or she has all the information
necessary to complete the order (the customer's credit rating and order history,
the company's inventory levels and the shipping dock's trucking schedule). Everyone
else in the company sees the same computer screen and has access to the single
database that holds the customer's new order. When one department finishes with
the order it is automatically routed via the ERP system to the next department.
To find out where the order is at any point, one need only log into the ERP
system and track it down. With luck, the order process moves much more quickly
through the organization, and customers get their orders sooner and with fewer
errors than before. ERP can apply that same magic to the other major business
processes, such as employee benefits or financial reporting.