Enterprise resource planning (ERP) integrates internal and external management information across an entire organization, embracing finance/accounting, manufacturing, sales and service, etc. ERP systems automate this activity with an integrated software application. Its purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders.
ERP systems can run on a variety of hardware and network configurations, typically employing a database to store data.
ERP systems typically include the following characteristics:
An integrated system that operates in (next to) real time, without relying on periodic updates.
A common database, that supports all applications.
A consistent look and feel throughout each module.
Installation of the system without elaborate application/data integration by the Information Technology (IT) department
Functional areas
Finance/Accounting
General ledger, payables, cash management, fixed assets, receivables, budgeting, consolidation
Human resources
payroll, training, benefits, 401K, recruiting, diversity management
Manufacturing
Engineering, bill of materials, work orders, scheduling, capacity, workflow management, quality control, cost management, manufacturing process, manufacturing projects, manufacturing flow, activity based costing, Product lifecycle management
Supply chain management
Order to cash, inventory, order entry, purchasing, product configurator, supply chain planning, supplier scheduling, inspection of goods, claim processing, commissions
Project management
Costing, billing, time and expense, performance units, activity management
Customer relationship management
Sales and marketing, commissions, service, customer contact, call center support
Data services
Various "self–service" interfaces for customers, suppliers and/or employees
Access control
Management of user privileges for various processes
Major Benefits of ERP:
Quality management
Improve the customer experienec
High level decision support capability
Provides accurate information to customers
Reduce data entry
Streamlined process
Improve supply chain management
Increase revenue
Improving on-time deliveries
Rasing product quality
Reducing customer service cost
Expanding into new markets
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