-By using MIP and other stock controls, smothering entire stocks and by optimum planning reducing the semifinished products and stocks of finished products
-Depending on inventory reduction, funds due in stocks, storage costs and reduction in administrative costs
-Depending on using entire sources (tools, devices, labor, team…etc) efficiently and providing reduction on costs
-Reviews about vendors and customers, statistical analysis, profit-loss-costs analysis to be made
-Keeping up with variable production conditions, so that increasing competition
-Increasing the quality and monitoring
-Costing in each phase
-Simulation
-Integration between inter-firm and firm-level and improvement in communications
-Answering questions about every transaction accurately, timely and correctly; from purchasing until sales
-Improvement in customer services
-Providing speed and discipline at all stages
-Development in decisions and controlling skills of administration
Consider an order. Finance, warehouse and production will do different processes related to these orders. Each department has specific software in its own function.ERP incorporates all these systems related to one database, at integrated software.In general, this order is in paper-work which is transferred from file to file, from office to office, signed, waitlisted and eventually forgot. It is saved in different formats in different facilities continuously. These complications result in delays or even worse, the loss of the order altogether. Using different formats for each step causes errors and inconsistencies. Also, it takes a really long time, if not impossible, to track the process.
The main idea behind the ERP is to simplify all these steps into one by bringing the finance, production, human resources, warehouse and production modules into one software. Although some of these facilities have still got their own systems, thanks to the ERP technology, these systems are linked and cooperative. This way, the status of the order can be monitored by all of the facilities, any time.
