Certified Supply Chain Professional (CSCP) Practice Exam

Which of the following is NOT a benefit of using ERP systems?

1. Improved communication across departments

2. Data redundancy

3. Enhanced data accuracy

4. Streamlined operational processes

The correct answer is: Data redundancy

Data redundancy is indeed not a benefit of using ERP (Enterprise Resource Planning) systems. In fact, one of the primary purposes of an ERP system is to reduce data redundancy by integrating different functions across departments into a single system. This integration helps ensure that data is entered only once and then used throughout the organization, which minimizes inconsistencies and errors that can arise when multiple departments handle the same information separately. Improved communication across departments is a significant benefit of ERP systems since they provide a centralized database that all departments can access, facilitating better collaboration and information sharing. Likewise, enhanced data accuracy is a crucial advantage, as the reduction of data entry duplication and the enforcement of data integrity rules lead to higher quality information. Streamlined operational processes are achieved by automating workflows and standardizing procedures, contributing to greater efficiency and lower operational costs. Each of these aspects showcases the benefits that ERP systems are designed to provide, while data redundancy stands out as a drawback that organizations aim to eliminate through effective ERP implementation.