1. ERP can solve the problem of inventory management with both material shortage and inventory backlog
Enterprises in the management of inventory issues, often in a dilemma.
To save more materials, there will be a backlog of funds, less material, but also afraid of material shortages, affecting production.
In this way, the shortage of materials and inventory backlog always exist at the same time, become inventory management problems.
Manual Job Management:
For the dynamic production process, the manual operation mode has not been able to keep up with the complex materials involved in mass production procurement requirements, can only be estimated, and only a few estimates.
Because of buying more, most people will not have an opinion (some small financial opinions), and buy less, will certainly be blamed.
Many enterprise warehouses are stocked with a lot of old waste materials, long time who can not understand how these things are produced. On the other hand, the storage is often not what is needed, the material shortage will always appear.
ERP combined with it technology to harmonize the production mode of enterprise management thought tools:
To reflect the balance of supply and demand. ERP manufacturing is the core part of MRP happens to be born, in the right time in the right quantity to get the right material . Coordination and balance, resulting in a shortage of both materials and a backlog of inventories.
(whether this is in line with the Chinese traditional culture of the "golden mean", which is to solve the "have to lose" problem and take the middle road and for it)
2. ERP can solve the contradiction between changeable market and balanced production
The market is changeable, and the enterprise wants the production activity to be balanced, this is a pair of basic contradiction that the manufacturing industry faces.
Market-oriented, customer demand-driven production does not mean that the production activities of the enterprise to follow the tail of demand (the other resources of the enterprise is also active), such arrangements for the enterprise is very harmful, and it is not always done.
As long as the production of products in a time period to match the needs of the market can be.
3. ERP makes the customer's supply commitment to do better
To improve the competitiveness of the market, we must quickly respond to customer demand, and on time delivery.
ERP will update the customer's committed amount (ATP) data at any time according to the changes in production and sales .
As long as the customer to a certain product order quantity and demand date input ERP system. The system can obtain the following information for the salesperson, in order to make the delivery commitment, it can be aware of:
1) can customer requirements be met on time?
2) if not satisfied on time, then on the customer demand date, the amount of commitments can be what? How can insufficient data be provided?
4. ERP can improve quality and reduce costs
Through the unified flow of data through the ERP, the staff of various departments to apply their posts, combined to implement a unified business plan . (Unified execution is much more enjoyable than chaotic execution.)
The work of the staff is more orderly, with the result is the quality of work improved, not a high rate of waste, once the work done. Therefore, to improve productivity , improve product quality , reduce costs and increase profits are accompanied by things.
5. ERP can change the departmental standard in enterprise
The traditional Enterprise view emphasizes the division of labor, so people tend to pay more attention to the interests of departments.
ERP emphasizes enterprise's whole and process. It integrates production, finance, sales, engineering technology, procurement and other subsystems into an integrated system.
Enhance the sense of cooperation, focus on the same direction, to operate and manage the enterprise in the view and manner of the process. To the overall operation mechanism, change the departmental standard view, but focus on collaboration.
6. ERP applications are no longer confined to manufacturing
For a wide range of industry solutions, ERP also extends to the needs of various industries.
Manufacturing, finance, high-tech industries, post and telecommunications, energy, utilities, business and retail, foreign trade, journalism and publishing, consulting services, healthcare, and hotel and hospitality industries.
What ERP can do