Scribd
Upload
43 views3 pages

What Does ERP Do?

Enterprise resource planning (ERP) is a software system that allows different departments within a company to share information and communicate more easily. ERP integrates key business processes, like inventory management, purchasing, sales, marketing, finance, and human resources into a single system. This provides a single point of access to data for a company and eliminates redundant data entry. ERP streamlines business processes to improve accuracy, productivity, and collaboration between departments.

Uploaded by

Harry Sai
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
43 views3 pages

What Does ERP Do?

Enterprise resource planning (ERP) is a software system that allows different departments within a company to share information and communicate more easily. ERP integrates key business processes, like inventory management, purchasing, sales, marketing, finance, and human resources into a single system. This provides a single point of access to data for a company and eliminates redundant data entry. ERP streamlines business processes to improve accuracy, productivity, and collaboration between departments.

Uploaded by

Harry Sai
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

Enterprise Resource Planning (ERP):

What Is Enterprise Resource Planning (ERP)?


Enterprise resource planning (ERP) is a platform companies use to manage and integrate the
essential parts of their businesses. Many ERP software applications are critical to companies
because they help them implement resource planning by integrating all the processes needed
to run their companies with a single system.

An ERP software system can also integrate planning, purchasing inventory, sales,
marketing, finance, human resources, and more.

Understanding Enterprise Resource Planning (ERP)


You can think of an enterprise resource planning system as the glue that binds together the
different computer systems for a large organization. Without an ERP application, each
department would have its system optimized for its specific tasks. With ERP software, each
department still has its system, but all of the systems can be accessed through one
application with one interface.

What Does ERP Do?


ERP applications also allow the different departments to communicate and share information
more easily with the rest of the company. It collects information about the activity and state
of different divisions, making this information available to other parts, where it can be used
productively.

ERP applications can help a corporation become more self-aware by linking information
about production, finance, distribution, and human resources together. Because it connects
different technologies used by each part of a business, an ERP application can eliminate
costly duplicates and incompatible technology. The process often integrates accounts
payable, stock control systems, order-monitoring systems, and customer databases into one
system.

How Does It Work?


ERP has evolved over the years from traditional software models that made use of physical
client servers and manual entry systems to cloud-based software with remote, web-based
access. The platform is generally maintained by the company that created it, with client
companies renting services provided by the platform.

Businesses select the applications they want to use. Then, the hosting company loads the
applications onto the server the client is renting, and both parties begin working to integrate
the client's processes and data into the platform.

Once all departments are tied into the system, all data is collected on the server and becomes
instantly available to those with permission to use it. Reports can be generated with metrics,
graphs, or other visuals and aids a client might need to determine how the business and its
departments are performing.

Benefits of Enterprise Resource Planning


Businesses employ enterprise resource planning (ERP) for various reasons, such as
expanding, reducing costs, and improving operations. The benefits sought and realized
between companies may differ; however, some are worth noting.

Improves Accuracy and Productivity


Integrating and automating business processes eliminates redundancies and improves
accuracy and productivity. In addition, departments with interconnected processes can
synchronize work to achieve faster and better outcomes.

Improves Reporting
Some businesses benefit from enhanced real-time data reporting from a single source
system. Accurate and complete reporting help companies adequately plan, budget, forecast,
and communicate the state of operations to the organization and interested parties, such as
shareholders.

Increases Efficiency
ERPs allow businesses to quickly access needed information for clients, vendors, and
business partners. This contributes to improved customer and employee satisfaction, quicker
response rates, and increased accuracy rates. In addition, associated costs often decrease as
the company operates more efficiently.
Increases Collaboration
Departments are better able to collaborate and share knowledge; a newly synergized
workforce can improve productivity and employee satisfaction as employees are better able
to see how each functional group contributes to the mission and vision of the company.
Also, menial and manual tasks are eliminated, allowing employees to allocate their time to
more meaningful work.

ERP Weaknesses
An ERP system doesn't always eliminate inefficiencies within a business or improve
everything. The company might need to rethink how it's organized or risk ending up with
incompatible technology.

ERP systems usually fail to achieve the objectives that influenced their installation because
of a company's reluctance to abandon old working processes. Some companies may also be
reluctant to let go of old software that worked well in the past. The key is to prevent  ERP
projects from being split into smaller projects, which can result in cost overruns.

The 5 Components of ERP


The components of an ERP system depend on the organization's needs. However, there are
key features that each ERP should include. Generally, packages include finance, human
resource, logistics and manufacturing, supply chain management, and customer relationship
management.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy