ERP Practices in Corporate Sector

Abstract

During the last few years, there has been a global tendency to implement ERP in almost every industry. The Saudi Arabian market has not been immune to this trend and has witnessed many various businesses have selected a variety of ERP solutions. Through time, ERP solutions have granted more satisfaction to customer requirements than any other solution. It is said that, if ERP is implemented successfully, the company automatically becomes world class in terms of its practices. This statement is true for most of the ERP products. Right from the industrial revolution and even further, we can see the efforts put in to improve existing practices. Typically, the classical industrial engineering principle says: there is always a better method available than the existing. Here the 'better' ultimately means improved efficiency, effectiveness and economics. If we understand the motto of this principle deeply, we may find the basic motivation of the kaizen in it. In this context, let us see what the best practice in ERP environment is. ERP assumes the fundamental set-ups as "Pillars of ERP". The best practice in ERP then can be defined as the utilization of these set-ups to the maximum possible to produce the desired performance in terms of customer focus, zero waste of all the resources, and value creation. Tangibly, it leads to increase in quality and service, and reduction of cost and response time. ERP enjoys having a strong skeleton based on these best practices. All the workflows in ERP are so thoughtfully maintained that it ensures that the user automatically follows the best practice. It won't allow the user to bypass or modify the predetermined course of actions that may create non -value added activity.