What are the tangible and intangible benefits of ERP system?
Tangible benefits are those measured in monetary terms and intangible benefits cannot be measured in monetary terms but they do have a very significant business impact.
Tangible benefits:
- Improves the productivity of process and personnel
- Lowering the cost of products and services purchased
- Paper and postage cost reductions
- Inventory reduction
- Lead time reduction
- Reduced stock obsolescence
- Faster product / service look-up and ordering saving time and money
- Automated ordering and payment, lowering payment processing and paper costs
Intangible benefits:
- Increases organizational transparency and responsibility
- Accurate and faster access to data for timely decisions
- Can reach more vendors, producing more competitive bids ;
- Improved customer response
- Saves enormous time and effort in data entry ;
- More controls thereby lowering the risk of mis-utilization of resources
- Facilitates strategic planning
- Uniform reporting according to global standards
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