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. The tangible and intangible benefits are discussed below :
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.
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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.
Also Read – Cloud ERP Software for MSME
