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Fundamentals of ERP

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Fundamentals of Enterprise Resource Planning

Enterprise resource planning software is integrating the manufacturing, human resource, finance, CRM (customer relationship management), SCM (supply chain management), DOM (distributed order management), into a single database. Value of enterprise resource planning software can be enormous. In ERP all the business process are integrated, a change in activity in one area of the company ripples through the system to all affected processes so that they could react accordingly.

Sales department is directly integrated with purchase, manufacturing, project, etc. Whenever sale is made by the sale or marketing guy, purchase department get notification to increase orders of raw materials, the manufacturing department to gear up for more production, HR that more labor will be needed to accomplish the demands of the increased sales.

The ERP process usually starts with a consultant SRS (system requirement study) study of the company's business processes and making recommendations as to significant features or integration required in the ERP system. ERP software also provides customization features to fulfill the specific needs of the organization. Some of the advantages to implementation of ERP system include lower stock costs, lower other costs, ABC analysis, VED analysis and reduce inventory, to maintain the same level of operation. Even with same workforce, plant and machinery organization can increase their level of operation.

An ERP is system suitable for any type of business whether small, medium or large business. Generally, ERP is expensive for small organization to implement, but selecting the right software and implementing the software in systematic way may be a worthwhile exercise. Low cost ERP is also available in the market.

Some of the major players in the ERP market for large organization are Oracle, SAP, Sage, and Microsoft and for SMEs SAP B1, Microsoft, Oracle E-business suit and many more.

Related Books
Enterprise Resource Planning
Enterprise Resource Planning
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In today's cutting-edge business world, integrated software plays a critical role. By bringing a company's many different functions together into one large integrated system, it creates an abundance of opportunities for growth and increased productivity.

Enterprise Resource Planning Systems
Enterprise Resource Planning Systems, Life Cycle, Electronic Commerce, and Risk
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It examines the pros and cons of integrated systems, explains how they work, and highlights their role at the heart of e-commerce. It contains several detailed case studies and will be an invaluable guide to managers and consultants working with these systems.

 Read Related Articles

How to Get Successful ERP Implementation
Faqs for Enterprise Resource Planning System
ERP Selection for SME - Microsoft Dynamics (NAV)/ Navision
ERP Software in India in SME Segment

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