Wednesday, March 28, 2018

Introduction to ERP

ERP is the acronym of 'Enterprise Resource Planning'.
'Enterprise' is the first word in ERP. That means it will consider the enterprise overall interest first. It gives an integrated approach to resource planning all over the enterprise.
That is building a single software program that serves the needs of people in finance as well as it does the people in human resources and in the warehouse. Each of those departments typically had its own computer system, each optimized for the particular ways that the department does its work. But ERP combines them all together into a single, integrated software program that runs off a single database so that the various departments can more easily share information and communicate with each other.
ERP automates tasks that performs business, thereby reducing delay, manpower & hence cost of the business.
ERP can

  • Automate Purchase Order generation process by considering stock, order position & consumption pattern
  • help sales team in giving real time position on stock, pending orders & production plan.
  • help customers in getting status of their orders
  • help warehouse personnel in providing exact stock & it's location
  • help production persons in planning production orders, tracking them & plan materials for the same.
  • help finance in updating ledgers, tracking any entry
  • Materials manager in reducing stock, minimize stock outs & control on thefts etc.
  • Top management in getting real time picture of their business, tracing any problem up to transaction level on their own.

As all the personnel in the organization are looking at the same data real time, the communication among various departments is better.
That, at least, is the dream of ERP. The reality is much harsher.