1. Processes linking different departments of the organisation
Action of one department can be made visible to another department. An example of the Procurement perfection will be appropriate here.
Indent is raised by the Stores Department, based on this action, Purchase Department can issue PO. And based on PO issued by the Purchase Department, the Accounts Department can process the Purchase Invoice for payment.
2. Controlled delegation
We all are worried when we delegate. But the ERP insures that the delegated powers will be exercised within specified limits.
Continuing with the above example, one can set different monetary limits for different Purchase Officers.
3. Information visibility across different departments
Continuing with the above example, the Purchase Department can see Indents against which PO are pending, and the Accounts Department can see Purchase Invoices which needs to be processed for payment.
4. Faster decision making in the organisation at all levels
One can see, how procurement is more timely, accurate and economical as the Purchase Department can be outstanding indents in real-time, knows exactly what needs to be purchased with correct specifications and also the purchase history of each item.
5. Improved turnover
Once the speed of execution of all the important processes in the organisation increases (like, Sales, Procurement, Production), it is quite obvious that more sales orders can be fulfilled leading to substantial increase in turnover.
6. Improved profitability
The increased speed of decision making leads to increase in turnover, which is one factor of increase of Net Profit. But the information visibility made by ERP leads to tremendous savings, like better pricing, reduced purchase rates, reduced inventory of raw materials and avoid stocking of redundant items.