In case, manufacturing is required the Sales Team update the Centralized Database, so that all the department remain informed about the product status.
Production Planning Department is auto updated by the Centralized Database for requirements. Production Planning Team checks the availability of the raw materials required via the Central Database, which is updated by the Inventory Department.
Thus, Data Duplication is avoided, and accurate data is made available. The Shop Floor Team update their Man Power Status regularly in the Central Database, which can be accessed by the HR department.
In case of shortage of workforce, HR team starts the recruitment process with considerable lead time to hire a suitable candidate at market price. Thus labor cost goes down.
While vendors can directly submit their invoices to the Central Enterprise System, which can be accessed by the finance department. Thus, payments are made on time, and possible legal actions are avoided
SAP software is a type of Centralized System. SAP Systems are the most popularly used in ERP software.