ERP (enterprise resource planning) is an industry term for the broad set of activities supported by multi-module application software that helps a manufacturer or other business manage the important parts of its business, including product planning, parts purchasing, maintaining inventories, interacting with suppliers, providing customer service, and tracking orders. ERP can also include application modules for the finance and human resources aspects of a business. Typically, an ERP system uses or is integrated with a relational database system. The deployment of an ERP system can involve considerable business process analysis, employee retraining, and new work procedures.

 

ERP Systems provide information management and analysis to organizations.

Top 5 Benefits.  There are five major benefits of ERP: 
1. On-line/real time information throughout all the functional areas of an organization.
2. Data standardization and accuracy across the enterprise.
3. Best-practices or optimized solutions are included in the applications.
4. Creates efficiencies that organizations would not otherwise have. 
5. The analysis and reporting that can be used for long-term planning.

Examples of ERP packages are HR, Financials, Manufacturing, Distribution, and Sales. Each ERP Package may offer different functionality for different industries.

ERP systems, fundamentally, integrate the different processes necessary in a business into a centralized pool that facilitates data sharing and eliminates redundancy.

Top 6 Advantages of an ERP system: 
1.  Information entered once into system .
2.  Forces use of the best practices. 
3  Allows customization .
4.  Based on reliable file structure.
5.  Provides functionality to interact with other elements in the process. 
6  Provides tools for ad hoc queries. 

We are fast approaching the era of enterprise knowledge system. The combination of on-line/real-time information, ERP (all enterprise and 100% accuracy of data), supply chain rapport (internal and external links between all activities), e-commerce, and advanced planning and scheduling systems are causing a revolution in transforming a reporting and planning tool into an intelligent business execution tool.

It must be remembered that ERP is an opportunity for business re-engineering. One gets the opportunity to restructure and reorganize people and departments to meet new challenges and global competition. Information is a vital factor along with quality, cost, and delivery to establish competitive advantage. As such, it calls for attitudinal changes which will help in a smooth transition, learning best practices, and adopting them into the business. No doubt, these changes will reap good profits in a short time. 

Finally, it is always remembered that these packages are tools to support the business. Close linkage to business must be reviewed and monitored to ensure that the required information is made available to the right people at the right cost and in the right format so as to gain competitive edge in the era of global competition. It is observed that, when a business crosses the boundaries of the nation and becomes multinational, it has no other option but to use ERP so as to standardize operations worldwide.

Keep your business up to date and accept the benefits ERP software will bring to your company. Think about the fact that many other companies are already using it because they know a technologically advanced client will not settle for less than a technologically advanced company that will offer him the newest and best products and services.

OYO Media does not settle for less either. We strive to be one step ahead to our competitors. Choosing our software you will be one step ahead to yours.