Enterprise Resource Planning (ERP)
Organizations across the globe have become cognizant of the fact that in a rapidly changing business environment, it is impossible to generate and maintain a custom designed software package that caters to all their requirements and also be up-to-date. An integrated and robust ERP system streamlines interactions of marketing, sales, quality control, requirement planning, manufacturing management, supply chain, human resources and many other processes into a unified system and database. It provides organization-wide unified platform to perform and record all transactions of all the functions of the respective departments, thereby, enhancing efficiency and eliminating the frequent loss of data and retyping errors.
ERP’s financial tools allow companies to successfully maintain financial information like that of the assets, accounts, budgets and cash. ERP assists an organization in effectively managing the internal and external factors affecting it, while enhancing resource efficiency by eliminating time consuming activities and repetitive tasks.
ERP also provides an important insight into organization’s materials management. It successfully automates the process of buying materials and maintaining them. There are modules track the purchased supplies and also calculate how the materials should be distributed. Moreover, you can effortlessly predict the demand of the market based on the history, economic statistics and sales data. This facilitates a company in their decision-making process for when a product production and provides a powerful competitive advantage by reducing “time to market” the products and/or services.
What is ERP?
ERP is an industry acronym for Enterprise Resource Planning. Broadly speaking, ERP refers to automation and integration of a company’s core business to help them focus on effectiveness & simplified success.
MF Bzone defines the meaning of ERP
The Information Technology industry is renowned for its adoption of acronyms, which are often widely used, but not fully understood. The term ‘ERP’ itself is not self-explanatory and refers to the business software that has been designed to record and manage your enterprise data.
An ERP System automates and integrates core business processes such as taking customer orders, scheduling operations, and keeping inventory records and financial data. ERP systems can drive huge improvements in the effectiveness of any organization by:
➤ Assisting you in defining your business processes and ensuring they are complied with throughout the supply chain
➤ protecting your critical business data through well-defined roles and security access
➤ enabling you to plan your work load based on existing orders and forecasts
➤ providing you with the tools to give a high level of service to your customers
➤ translating your data into decision making information
Benefits of ERP for your Business
Integration across all business processes To realize the full benefits of an ERP system it should be fully integrated into all aspects of your business from the customer facing front end, through planning and scheduling, to the production and distribution of the products you make.
Automation enhances productivity By automating aspects of business processes, ERP makes them more efficient, less prone to error, and faster. It also frees up people from mundane tasks such as balancing data.
Increase overall performance By integrating disparate business processes, ERP ensures coherence and avoids duplication, discontinuity, and people working at cross purposes, in different parts of the organization. The cumulative positive effect when business processes integrate well is overall superior performance by the organization.
Quality Reports and Performance Analysis Analysis on ERP will enable you to produce financial and boardroom quality reports, as well as to conduct analysis on the performance of your organization.
Integrates across the entire supply chain A best of breed ERP system should extend beyond your organization and integrate with both your supplier and customer systems to ensure full visibility and efficiency across your supply chain.