Enterprise Resource Planning

                           

Enterprise resource planning (ERP) is a business-management software— It tries to integrate all the different departments and functions of an organization into a single computer system to serve the various needs of these departments—that an organization can use to collect, store, manage and interpret data from many business activities, including:

·         product planning, purchase

·         manufacturing or service delivery

·         marketing and sales

·         inventory management

·         shipping and payment

·         finance

 ERP is a system that organizes functions of an institution and  supporting, for example, accounting, finance, human resources and e-commerce applications

Top 4 ERP Trends

The following new and continuing trends affect enterprise ERP software:

Mobile ERP 

Mobile ERP is a suite of integrated applications—that a company can use to store and manage data from every stage of business.

Cloud ERP

Cloud ERP systems (and on-premises) is a shared database that supports multiple functions used by different business units. Cloud ERP enables a company’s accounting, operations management and reporting to run in the cloud.

Social ERP

There has been much hype around social media and how important – or not -- it is to add to ERP systems. Certainly, vendors have been quick to seize the initiative, adding social media packages to their ERP systems with much fanfare. But some wonder if there is really much gain to be had by integrating social media with ERP.

Two-tier ERP

Two-tier ERP software and hardware lets companies run the equivalent of two ERP systems at once  one at the corporate level and one at the division or subsidiary level .Enterprises once attempted to build an all-encompassing ERP system to take care of every aspect of organizational systems

Functional areas of ERP

An ERP system covers the following common functional areas. In many ERP systems these are called and grouped together as ERP modules:

Marketing/Sales: Tasks related to customer visits, expenses, shipping, invoicing, forecasting and competitor analysis can be automated and/or enhanced through an ERP system

Customer RelationshipManagement: Sales and marketing, commissions, service, customer contact, call center support

Supply Chain Management : Supply chain planning, supplier scheduling, purchasing 

Manufacturing :  Engineering, Work orders ,quality control, manufacturing process, manufacturing projects, manufacturing flow, product lifecycle management

Accounting/Finance: Fixed asset, payables including vouchering, matching and payment,  cash management, Financial consolidation

Human Resources: Recruitment, payroll, retirement pension, training ,benefits

Advantages of ERP System

·  ERP software accurate forecasting inventory levels kept at maximum efficiency, this allows for the  organization to be profitable.

· Integration of the various departments ensures communication, productivity, and efficiency.

·  Adopting ERP software eradicate the problem of coordinating changes between many systems.

·  ERP software provides a top-down view of an organization, so information is available to make decisions at anytime, anywhere.