Enterprise resource planning (ERP)

Enhancing the organization's efficiency

Brand Identity

Enterprise resource planning (ERP) is the integrated management of main business processes, often in real-time and mediated by software and technology.
ERP is usually referred to as a category of business management software — typically a suite of integrated applications—that an organization can use to collect, store, manage, and interpret data from these many business activities.
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ERP systems can be extended with third–party software, often via vendor-supplied interfaces. Extensions offer features such as:
product data management
product life cycle management
customer relations management
data mining
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ERP systems typically include the following characteristics:
An integrated system.
Operates in (or near) real time.
A common database that supports all the applications.
A consistent look and feel across modules.
Installation of the system with elaborate application/data integration by the Information Technology (IT) department, provided the implementation is not done in small steps.
Deployment options include: on-premises, cloud hosted, or SaaS.
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Industry Verticals

An ERP system covers the following common functional areas.

Finance & Accounting: General Ledger, Fixed Assets, payables including vouchering, matching and payment, receivables Cash Management and collections, cash management, Financial Consolidation

Management Accounting: Budgeting, Costing, cost management, activity based costing

Human resources: Recruiting, training, rostering, payroll, benefits, retirement and pension plans, diversity management, retirement, separation

Manufacturing: Engineering, bill of materials, work orders, scheduling, capacity, workflow management, quality control, manufacturing process, manufacturing projects, manufacturing flow, product life cycle management

Order Processing: Order to cash, order entry, credit checking, pricing, available to promise, inventory, shipping, sales analysis and reporting, sales commissioning.

Supply chain management: Supply chain planning, supplier scheduling, product configurator, order to cash, purchasing, inventory, claim processing, warehousing (receiving, putaway, picking and packing).

Project management: Project planning, resource planning, project costing, work breakdown structure, billing, time and expense, performance units, activity management

Customer relationship management: Sales and marketing, commissions, service, customer contact, call center support — CRM systems are not always considered part of ERP systems but rather Business Support systems (BSS).

Data services : Various "self–service" interfaces for customers, suppliers and/or employees

The most fundamental advantage of ERP is that the integration of a myriad of business processes saves time and expense. Management can make decisions faster and with fewer errors. Data becomes visible across the organization. Tasks that benefit from this integration include:
Sales forecasting, which allows inventory optimization.
Chronological history of every transaction through relevant data compilation in every area of operation.
Order tracking, from acceptance through fulfillment
Revenue tracking, from invoice through cash receipt
Matching purchase orders (what was ordered), inventory receipts (what arrived), and costing (what the vendor invoiced)

ERP systems centralize business data, which:

Eliminates the need to synchronize changes between multiple systems—consolidation of finance, marketing, sales, human resource, and manufacturing applications
Brings legitimacy and transparency to each bit of statistical data
Facilitates standard product naming/coding
Provides a comprehensive enterprise view (no "islands of information"), making real–time information available to management anywhere, anytime to make proper decisions
Protects sensitive data by consolidating multiple security systems into a single structure
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