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What is ERP System?

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Enterprise Resource Planning Systems

ERP stands for Enterprise Resource Planning. It integrates all data and processes of an organization into one single and centralized system. These systems comprise of many components of hardware and software, in order to achieve integration from various departments in the organization. It uses a single database to store data for various functions of the organization.

ERP is a term originally derived from MRP II (Manufacturing Resource Planning) that followed material requirements planning (MRP). MRP is typically handle the manufacturing process for company and ERP systems handle the logistics, sales and distribution, inventory, shipping, finance, and accounting along with manufacturing. Earlier this integrated system was useful for large organizations only to handle their wide resources, but nowadays use of ERP has changed and is extremely comprehensive, today it can refer to any type of company, small/medium/large. Enterprise Resource Planning is an industry term for the broad set of activities that helps to integrate all the functions of the organization such as manufacturing, supply chain management, financials, projects, human resources and customer relationship management.

ERP software applications can be used to manage product planning, purchase, inventory, interacting with suppliers, customer relationship management service, and order tracking. Enterprise Resource Planning software provides a bird’s eye view to the management to control the business activities, including sales, marketing, dispatch, billing, production management, inventory management, quality management and personal management. Software system can be considered as ERP if providing an organization with functionality for two or more systems.

An Ideal ERP consists of following modules -

Manufacturing: MRP, Production Planning, Workflow Management, Quality Control, BOM, Manufacturing Process, etc
Financial: A/c Payable, A/c Receivable, Fixed Asset, General Ledger, Cash Management, Work Center, Chart of Account etc
Inventory: GRN, Gate Pass, Quality Check, Inventory Management, ABC Analysis, Fast Moving Items, etc.
Purchase: Supplier Scheduling, Order Entry, Purchase Order, Purchase Order Amendment, etc.
Sales: Pre-sales activities, Post sales activities, CRM, Sales and Marketing, Commission, Customer Contacts, Customer Supports, etc.
HRM: Benefits, Attendance, Training, Recruiting, Payroll, Appraisal, Interview, Employee Masters, etc.



Related Books
Configuring SAP ERP Financials and Controlling
Configuring SAP Financials and Controlling
Visit Official Site
Buy from Official Site
This book has no competitionit is the only book on the market on how to configure and implement SAPs FI and CO modules to maximize functionality and features hands-on, step-by-step instructions and real-world examples that provide immediate and practical solutions.

Enterprise Resource Planning Systems
Enterprise Resource Planning Systems, Life Cycle, Electronic Commerce, and Risk
Visit Official Site
Buy from Official Site
This book 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

Advantages of Enterprise Resource Planning
Introduction to Enterprise Resource Planning
ERP for Manufacturing Company - Challenge, Solution
How to Get Successful Implementation

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