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


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