FAQ - How can ERP improve a company's business performance?
There are 4 main ways that a properly implemented ERP (enterprise resource planning) system will help improve business performance (for how to properly implement an ERP system see our implementation checklist ) :
1) The demand management functionality of the master schedule will enable more reliable delivery promises and so increasing the on time in full delivery record to 98% or better with the best possible lead time. This should lead to an increased share of the available business.
2) The ability to plan material and components in matched sets of parts to meet actual and forecast customer requirements increases efficiency in manufacturing.
3) The ability to plan capacity requirements in advance enables more efficient use of production resources.
4) Better planning leads to lower inventory for the same customer service level.
You can see the typical percentage improvements of ERP implementations evaluated in the ERP benefits table. Please also see http://www.bpic.co.uk/checklst.htm for a link to a cost and benefit analysis.
For average improvements see ERP benefits