This article will provide you an overview about ERP System especially for beginners. It is a brief intro about modules, key characteristics, benefits & drawbacks.
Enterprise Resource Planning (ERP):
- ™The ERR stands for “Enterprise Resource Planning”.It is also called as ‘Integrated System’.
- ™ERP can be defined as a process of organizing all resources and their use in the entire enterprise in a synchronized way.
- ™Enterprise resource planning (ERP) is basically Business Management Software. E.g. SAP, Oracle, Microsoft Dynamics, Consona etc.
Overview of ERP System:
Enterprise Resource Planning (ERP) System:
- ™Enterprise Resource Planning System is a set of integrated business applications, or modules which hold common business functions.
- ™It can be described as: Enterprise resource planning (ERP) is business procedure management software that allows an organization to use a system of integrated applications to control the business and automate many back office functions related to technology, services and human resources.
Key Functions of Enterprise Resource Planning System:
The Enterprise Resource Planning System has lots of technological & economical benefits. Some of them are mentioned here.
- ™Integration of all business processes at one place.
- ™ Automation of procedures enhances productivity.
- ™Increase overall performance of your organization.
- ™ Quality in Reports Accuracy illustrates Performance Analysis.
- ™ Integrates transversely the entire supply chain.
- ™ A Single DataBase that supports all applications
- ™ A consistent look and feel across modules.
- ™Ease of Access more portability features.
- ™Raise Profitability Level.
- ™Raise Portability Features.
- ™Time Management Features.
- ™Higher level of Customer Satisfaction.
- ™Attract More Traffic.
Enterprise Resource Planning System Basic Modules:
Enterprise Resource Planning System is a vast subject that cannot be handled in a single clause. It has a list of modules. The varying domain size of your clientele, work on acquiring modules. Commonly listed modules are:
- ™Sale
- ™Human Resource
- ™Supply Chain
- ™Inventory
- ™Customer Relations
- ™Payroll
- ™Cost Center
- ™Accounts etc.
Benefits of Enterprise Resource Planning System:
There are lots of benefits of Enterprise Resource Planning System but here I mentioned some core benefit organization got by using ERP System.
- ™Chronological History of every Transaction.
- ™Order Tracking.
- ™Sales forecasting, that allows inventory optimization.
- ™Revenue Tracking, from invoice through cash receipt.
- ™Matching purchase orders (what was ordered), inventory receipts (what arrived), and costing (what the vendor invoiced).
- ™Centralized Business Data.
- ™ERP System provides improved opportunities for collaborative work environment.
Drawbacks of Enterprise Resource Planning System:
Some of Enterprise Resource Planning System drawbacks are listed here.
- ™Customization is problematic. Usually it required highly skilled developers having strong command on core requirements.
- ™Enterprise Resource Planning System implementation cost more.
- ™Overcoming resistance to sharing sensitive information between departments can distract management attention.
- ™Integration of truly self-determining businesses can create needless dependencies.
- ™Extensive training requirements take resources from daily operations.
- ™Evaluation prior to implementation of Enterprise Resource Planning System is critical.
