In this article, we are going to do discussion about ERP software. This main purpose of this discussion about to provide basic idea about ERP software to the interested people.
ERP, refers to Enterprise Resource Planning, software integrate internal as well as external management of information throughout an entire organization. The management of internal and external information includes manufacturing, customer relationship management, finance or accounting, human resource management, supply chain management, sales and service, etc. This software integrates and automates all these activities with an integrated software application. ERP allows flow of information between all business activities within the organization, as well as manages relations with outside stakeholders.
Organizations consider the ERP software a crucial organizational tool as it integrates various organizational systems and facilitates faultless production and transactions. This software are very different from traditional systems. It can runs on a range of computer hardware and network configurations, usually employing a database as a repository for data.
Enterprise Resource Planning software system is a multi-billion dollar industry that creates components that support a range of business activities. IT (Information Technology) investments have become the major category of capital expenditure over the last decade. This software is multifaceted software package that offers the potential of integrating information and processes across activities in an organization. Even though, the initial ERP software focused on big organization, there has been a move towards small and middle organizations also using this software.
Usually, ERP software includes the following characteristics:
1.ERP system is an integrated system that works in real time, without depending on sporadic updates.
2.It uses a common database that supports all applications.
3.It has a reliable look and feel during all modules.
4.The implementation of this software requires lot of time as well as money. It is not so easy.
It is usually covers lots of functional areas. The common functional areas covered by software are as follows:
1.Financial accounting: fixed asset, general ledger, receivables, payables, cash management, financial consolidation, etc.
2.Management accounting: cost management, costing, budgeting, activity based costing, etc.
3.Human resources: recruiting, retirement, training, payroll, separation, diversity management, etc.
4.Manufacturing: engineering, scheduling, work orders, bill of materials, capacity, quality control, workflow management, product life cycle management, manufacturing projects, manufacturing process, manufacturing flow, etc.
5.Supply chain management: supplier scheduling, supply chain planning, inventory, purchasing, order to cash, claim processing, product configuration, etc.
6.Project management: project costing, project planning, resource planning, billing, work break down structure, time and expense, activity management, performance units, etc.
7.Customer relationship management (CRM): sales and marketing, call center support, customer contact, services, commissions, etc.
8.Data services: Data services include many “selfâ��service” interfaces for suppliers, customers and employees.
There are lots of advantages of ERP software. The fundamental advantage of Enterprise Resource Planning software are that integrating several businesses processes and functions saves time as well as expense. With the help of ERP software, management can make faster decisions with fewer mistakes. All the information becomes available all through the organization. ERP software can significantly enhance the efficiency and quality of a business.
I think, this discussion about ERP software will be helpful you to have a basic knowledge about Enterprise Resource Planning software.
By: Raibeart Santo
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