Imagine controlling all your back office processes right from your office desk with the help of a single software console? What once seemed impossible can now be achieved due to the availability of the much talked about software called ERP. If you are a small business owner or an entrepreneur owning a vast manufacturing unit, an ERP planning software could be used effectively by you for managing both external and internal resources including all your inventory, tangible assets, human resources as well as finances.
What You Should Know About ERP
The term ERP planning was coined by Gartner's in 1990 and was used as an extension of Manufacturing Resource Planning or CIM (Computer Integrated Manufacturing). ERP is essentially a software architecture that has been designed with the main purpose of allowing free flow of information between different business departments of the organizations and also be able to answer the queries of external stakeholders. ERP is usually placed on a centralized server and has a centralized database. It would be best to say that contrary to popular belief ERP is not software but is actually a methodology that integrates various software applications into one single system that can fulfil the needs of the various departments of an enterprise.
ERP was initially designed for the manufacturing companies but now these applications find extensive usage in non manufacturing organizations, government organizations and even non profit firms. To qualify as an ERP package an application should meet the following criteria:
One must be able to integrate and use the software in real time and this software should not require periodic updates
ERP
planning should make use of central database to avoid multiple data definition and data redundancy
The interface should be user friendly, easy to navigate and all the modules should look alike
The information stored in the system should be easy to access
Components of ERP
The various components of an ERP include:
Basic modules which are even known as the transactional backbone like distribution, product life cycle management, finance and human resource
Advanced applications which can include modules for Supply Chain Management (SCM), Customer Relationship Management (CRM) and Warehouse Management System
Lastly it should have a Management Dashboard or Portal for complete administration
Application of ERP
ERP is commercially being used in various domains like:
Manufacturing for scheduling, workflow management, cost management, manufacturing project/processes, quality control and engineering
Supply chain management for inventory management, goods inspection, claim processing, supplier scheduling, order entry, commission calculation etc
In financials for cash management, fixed assets, accounts receivables/payables
Human resource module for payroll, time and attendance, compensation and benefits, training etc
By project managers for costing, time and expense, billing, activity management and performance unit
Benefits of Using ERP To learn more about the benefits of using ERP include:
It helps in bringing down the cost of operations of a company though the initial cost of installation and training is quiet high
As ERP helps in integrating different departments in an enterprise it helps in increasing the productivity and performance of the company
ERP can make your company go really global as it supports multiple languages, different currencies and tax structures.
Equipped with knowledge about ERP you can now analyze how this system could be used to spur your business on to greater heights.
Author Resource:-
Data Technology is an online company that will be able to help you find the perfect ERP Planning to be able to help you improve your company. For more information visit the website at http://www.datatechnology.co.uk/
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