Enterprise Resource Planning

Enterprise Resource Planning

« Back to Glossary Index
Visit Us
Follow Me

Enterprise Resource Planning (ERP) is a type of business management software that allows an organization to use a system of integrated applications to manage the business and automate many back-office functions related to technology, services, and human resources.

ERP software typically integrates all facets of an operation, including product planning, development, manufacturing, sales and marketing in a single database, application, and user interface. For example, with an ERP system, different departments like accounting, human resources, and supply chain can easily share information and collaborate.

ERP systems can include the following functionalities:

  1. Finance & Accounting: General ledger, accounts payable, accounts receivable, fixed assets, and cash management.
  2. Human Resources: Benefits, training, payroll, time and attendance, and HR management.
  3. Manufacturing: Bill of materials, work orders, scheduling, capacity, workflow management, quality control, manufacturing process, manufacturing projects, and manufacturing flow.
  4. Supply Chain Management: Inventory, order entry, purchasing, product configurator, supply chain planning, and supplier scheduling.
  5. Project Management: Costing, billing, time and expense, and performance units.
  6. Customer Relationship Management (CRM): Sales and marketing, service, customer contact, and call center support.
  7. Data Services: Various “self–service” interfaces for customers, suppliers and/or employees.

ERP can greatly increase the efficiency of business operations by reducing the time spent on tasks, eliminating duplication of effort, and automating processes. It can also improve data accuracy and accessibility, facilitate better project planning, and streamline business processes.

However, implementing an ERP system can be a large and complex task, and it’s often expensive. Businesses often require help from specialists to set up these systems and need to invest time into training staff to use them effectively. But if implemented well, an ERP system can greatly enhance a business’s efficiency and competitiveness.

You may also like...