Ask the Expert

What are some key areas in which ERP systems can yield additional cost savings?

Describing it at a very high level, companies can address efficiency issues by increasing the amount of automation (usually by reducing spreadsheet use or keying/re-keying data); redefining processes to eliminate unnecessary steps or increase commonality; increasing their use of electronic data links to customers, suppliers or partners (or even within their organization if they have not done it already); replacing paper documents with scanned images; and saving time by having computers count the beans and letting people manage by exception.

Increasing the use of end-to-end processes is one concrete way companies can use their ERP systems to increase efficiency. We found only half of the companies have implemented an order-to-cash process, even though it usually cuts the effort needed to manage transactions and shortens the cycle.

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Common ERP Myths

ERP means more work and procedures

ERP will make many employees redundant and jobless

ERP is the sole responsibility of the management

ERP is just for the Managers/Decision-makers

ERP is just for Manufacturing Organizations

ERP is just for the ERP implementation team

ERP slows down the organization

ERP is just to impress customers

ERP package will take care of everything

One ERP Package will suit everybody

ERP is very expensive

Organization can succeed without ERP

 

 

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