how does an ERP system can contribute to improve the efficiency and effectiveness of an organization. please relate the answer to a value chain.
HELP PLEASE
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This is straight out of an assignment, and can have a huge answer.
The basic essence of ERP is integration, so it ensures transparency in an organization with the effect that the relevant departments have got access to information.
To your question of how does it help in efficiency and effectiveness, the following points should help
•There is no time wastage running around for dependent data (Eg if a sales order has been created, the warehouse guy knows what and how much to deliver without anybody coming and telling him)
•It allows production people to plan the operations better. As an example, the production team can plan out how much to produce depending on the sales orders / expected sales. With better plan, there is lower inventory (so lower costs)
•Purchase and sales processes are faster, and ensures customer satisfaction and better terms with the vendors.
•It helps in creation of MIS reports for higher management to take strategic decisions (since data extraction is easy)
There are just too many advantages of this. If you require any detail / clarification, you can PM me.