Monetary Benefits of RAMA’s Implementation
Reduced Purchase Cost: Reduction of procurement cost through easily available database of purchase history & quotation comparison.
Correct Landed Cost: ERP does add all other purchase cost of procurement while updating inventory cost resulting in correct cost of product.
Three ways billing passing eliminates risk of incorrect or duplicate bill booking.
Information availability like inventory at each location, re-order level, safety stock and maximum level facilitates reduction in slow moving inventory, carrying cost, dead stock, excess stock and so on.
Through Bill of Material (BOM) accurate material requirement in fractional precision reduces wastage & encourages. Just In Time (JIT) inventory management. It also calculates material variances through capturing actual goods consumed.
Capturing of information like set-up time, break-down, indirect material consumption, actual labour hours, quality rejections, scrap value and damage production etc. lead to accurate arrival of cost of production.
Availability of delivery due date, pending deliveries, barcode scanning, manufacturing date of goods and lead time etc. result in effective dispatch procedures, resulting in better customer satisfaction and repetitive orders.
Accurate ageing analysis, automated reminders and credit limit monitoring contribute in reducing bad debts.