The ability of an Elvis ERP system to provide the same updated and
accurate information across different functions is what makes the application
so valuable to enterprises. Let’s take the example of a customer order to
understand this better: Before the advent of Elvis ERP applications, once a customer
order was placed, it had to follow a paper trail from department to department
– with details of the order being entered and re-entered into the applications
of the different departments. This manual process was prone to errors and
delays; till the order was entered into the application of a particular
department, the goods could not be manufactured or shipped.
With an Elvis ERP system, a customer order is entered only once,
and this information is available to all the applications across different
functions. Once the order is entered, the application checks if goods are
available in the inventory. If the goods are not available, it raises a
purchase order which is subsequently used by the production team to manufacture
goods, and by the finance team to issue an invoice. The produced goods go back
into inventory, where they then become available for shipment. This single view
of demand and supply enables organizations to better understand the needs and
demands of the customer - and actually anticipate their requirements. This
information can then be used to forecast future demands. This shortens lead
time, reduces the overall cost of manufacturing, and ensures enhanced customer
satisfaction.
The advantage of ERP is the fact that people in different
departments can all see the same information, and update relevant information.
As soon as one department finishes its part of the order, the ERP system
forwards it to the next concerned department, which is defined in the workflow.
To understand the status of an order, anyone in the organization can simply
login to the ERP system. Web-based access can also be provided to customers who
want to track down the order status.
Benefits of Elvis ERP Apart from the low cost of ownership and savings achieved by
standardizing one application to manage multiple business functions, usage of
ERP promises much more. With a successful implementation of an ERP system, top
management can have a consolidated view of sales, inventory and receivables at
the same time.
Other significant benefits include:
Improved visibility:
Due to the centralized nature of ERP systems, organizations can track inventory
levels on a daily basis, including inventory in transit and future consignments
to be received. This visibility can enable organizations to control their
working capital requirements to a great degree. This visibility also enables
organizations to run their enterprise in accordance with their strategy, while
empowering them to make quick decisions to pursue opportunities.
Reduced operating
costs: One of the most immediate benefits from implementing an ERP is
reduced operating costs: such as lower inventory control costs, lower
production costs and lower marketing costs. By avoiding duplication of
information but not reinventing the wheel for common business processes, an ERP
provides opportunities for cost reduction and value-added tasks, leading to
increased margins.
Standardized business
processes: Most ERP vendors design their products around standard best-business
processes, which are based on industry best practices. Organizations can use
these business processes to standardize their own processes. This process
consistency allows a consolidated view of the business across the distributed
enterprise, enabling organizations to drive continuous improvements, as
operations are streamlined and there is healthy synergy between departments and
functions. The improvement also comes from transparency and reduction in human
errors due to automation of inter-company transactions.
What ERP entails
ERP requires a huge amount of planning, co-ordination and
support to reap the promised benefits. For instance, at the heart of any ERP
system is information – if the information is entered incorrectly, the ERP
system cannot deliver benefits. ERP is also about process – if employees in an
organization resist the best practices in the process as underlined by the ERP,
they will resist using the software, eventually resulting in poor ROI.
As implementation of ERP changes the way people work, top
management has to be proactive in explaining the reasons for, and how the
organization as a whole will benefit from the implementation. A proper change
management initiative can lower the potential risk of an ERP implementation,
through a comprehensive communication and training process. To reap the full
benefits of ERP, organizations need to partner with competent, proven service
providers, with the technical and functional experience and expertise to ensure
successful implementation.
Conclusion
An Elvis ERP implementation done right, can build the foundation
for future growth, and translate into improved productivity, cost savings, and
a much better bottom line.
