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Enterprise Resource Planning

 

It is a company-wide computer software system used to manage and coordinate all the resources, information, and functions of a business from shared data stores. An ERP system has a service-oriented architecture with modular hardware and software units or "services" that communicate on a local area network. The modular design allows a business to add or reconfigure modules while preserving data integrity in one shared database that may be centralized or distributed.

 

In the absence of an ERP system, a large manufacturer may find itself with many software applications that cannot communicate or interface effectively with one another.

 

Advantages:

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  • Integration among different functional areas to ensure proper communication, productivity and efficiency Design engineering
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 Tracking the three-way match between purchase orders (what was ordered), inventory receipts (what arrived), and costing (what the vendor invoiced)
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 The accounting for all of these tasks: tracking the revenue, cost and profit at a granular level.
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  • Managing inter-dependencies of complex processes bill of materials
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  • ERP Systems centralize the data in one place preventing loss of sensitive data.

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  • Features:
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    ERP facilitates company-wide Integrated Information System covering all functional areas like Manufacturing, Selling and distribution, Payables, Receivables, Inventory, Accounts, Human resources, Purchases etc.,
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    ERP not only addresses the current requirements of the company but also provides the opportunity of continually improving and refining business processes.
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    ERP provides business intelligence tools like Decision Support Systems (DSS), Executive Information System (EIS), Reporting, Data Mining and Early Warning Systems (Robots) for enabling people to make better decisions and thus improve their business processes
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    • ERP provides for complete integration of Systems not only across the departments in a company but also across the companies under the same management.
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    ERP eliminates the most of the business problems like Material shortages, Productivity enhancements, Customer service, Cash Management, Inventory problems, Quality problems, Prompt delivery etc.