What is ERP? Enterprise resource planning is basically the integrated management of various business procedures, most often on remote servers and mediated via computer and technology. ERP integrates all the functions of a business process in one system. ERP (Enterprise Resource Planning) is a software package that enables companies to manage their enterprises more efficiently by providing them with a consolidated view of all the aspects of their business. ERP has many applications and services and depending on your company’s need, it can be customized to meet all its needs.
ERP mainly focuses on five major topics: planning and inventory management, distribution, production, financial operations and information. The planning and inventory management integrate planning, ordering, pricing and inventory management. Distribution involves the movement of raw materials, finished goods and customers among the different locations. Production involves the processes involved in the production of the product or services and includes the development of quality standards, safety measures, production cost, methods of production and workers’ activity level. Financial operations include billing, finance, control, payment and collection of payments for products and services sold.
In a large company, one or more ERP systems might be needed for overall strategic planning, manufacturing planning, operation, delivery and sales. ERP might be called an ‘enterprise resource planning’ system. The manufacturing aspect of the firm would comprise the supply chain. When there are multiple sites for manufacturing and different types of customers and vendors, the entire flow of the manufacturing process varies. ERP helps in efficient management of such sites through the execution of single tasks in a wide variety of processes. The result is a cost-effective and quality production process that contributes to the firm’s competitiveness in the market.
The planning can be done with the use of information science. This will also involve the application of computer software to gather information and produce reports in an accurate manner. ERP software can automate business processes that have been previously managed by the employees. When what is ERP is correctly understood, the utilization of such software can facilitate the smooth transition from the present system to what is ERP.
Enterprise resource planning can automate all business processes, but to achieve the goal of maximum benefit, what is ERP will be combined with automation. For example, a company might want to replace all its cashiers, shipping department and accounting department. To achieve maximum productivity, what is ERP can be combined with automated accounting processes and a single source for purchasing, inventory and distribution. Such a move will help increase the speed and improve the accuracy of the accounting process.
Another advantage for what is ERP? It will enable various departments of the organization to operate as a single unit. Some advantages of ERP include improved interdepartmental communication. In addition, ERP system can provide customers with real-time information and eliminate the need for human intervention in data entry and financial processing. As what is ERP is combined with proper and intelligent ERP software, the entire operation becomes more customer-centric and hence cost-efficient.
Another advantage of what is ERP? What is ERP and how it helps to streamline operations is made possible when ERP is coupled with modern erp systems. Modern erp systems are designed to support the concept of visibility, control and visibility, which is the key requirements of what is ERP.
Visibility basically refers to how everything stays in view, regardless of what is happening around it. For instance, a fire will not prevent your office from being smoke free. However, a modern erp system with its suite of smart analytics modules can ensure that your business stays in view of what is going on in the market, in addition to keeping a track of your sales and inventory. Control is what all enterprises need to keep tabs on their manufacturing process and in particular how their production is affected by unplanned events. Again, with the use of modern erp software, the entire system is able to keep track of all aspects of the production process and thereby reducing the risks of unplanned events.
