What Is ERP System?

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.

Being an employee of SoultionDots i would like introduce my company services for ERP System Development. we have strong team of developers that are committed for promised deadlines. Our strong reputation in market is evidence of excellence in our work.