Analyse two ways that enterprise resource planning (ERP) could improve the efficiency of WS.

Mark scheme

Marking points from the official mark scheme (May/June 2025). The mark or mark type is shown in brackets.

1. [K1] ERP: software integrating information from all business functions, supply, production, marketing and HR.
2. [K1] Efficiency measures the ratio of inputs to outputs.
3. [K1] Possible benefits include: Reduction of costs and waste.
4. [K1] Possible benefits include: Better control of inventory.
5. [K1] Possible benefits include: More accurate costing and pricing decisions.
6. [K1] Possible benefits include: Higher capacity utilisation.
7. [K1] Possible benefits include: Faster response to change.
8. [APP1] Application to WS by making use of relevant case information once (e.g., current use of IT, Keri begun research into ERP, batch production on assembly lines, shoes sold into three constantly changing markets).
9. [AN1] Reducing costs and waste increases profits.
10. [AN1] Better inventory control reduces costs, aids planning and communication with suppliers and customers.
11. [AN1] More accurate costing/pricing enables customer specific pricing and increases sales and goodwill.
12. [AN1] Higher capacity utilisation reduces average costs and increases profitability.
13. [AN1] Faster response to change enables better purchasing materials, production methods and higher sales.