Enterprise resource planning (ERP) integrates internal and external management information across an entire organization, embracing finance/accounting, manufacturing, sales and service, CRM, etc. ERP systems automate this activity with an integrated software application. Its purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders.
ERP systems can run on a variety of hardware and network configurations, typically employing a database to store data. ERP systems typically include the following characteristics: An integrated system that operates in real time (or next to real time), without relying on periodic updates.[citation needed] A common database, which supports all applications. A consistent look and feel throughout each module. Installation of the system without elaborate application/data integration by the Information Technology (IT) department. Functional areas Finance/Accounting General ledger, payables, cash management, fixed assets, receivables, budgeting, consolidation Human resources payroll, training, benefits, 401K, recruiting, diversity management Manufacturing Engineering, bill of materials, work orders, scheduling, capacity, workflow management, quality control, cost management, manufacturing process, manufacturing projects, manufacturing flow, activity based costing, Product lifecycle management Supply chain management Order to cash, inventory, order entry, purchasing, product configurator, supply chain planning, supplier scheduling, inspection of goods, claim processing, commissions Project management Costing, billing, time and expense, performance units, activity management Customer relationship management Sales and marketing, commissions, service, customer contact, call center support Data services Various "self-service" interfaces for customers, suppliers and/or employees Access control Management of user privileges for various processes Advantages The fundamental advantage of ERP is that integrating the myriad processes by which businesses operate saves time and expense. Decisions can be made more quickly and with fewer errors. Data becomes visible across the organization. Tasks that benefit from this integration include Sales forecasting, which allows inventory optimization 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, bringing the following benefits: They eliminate the need to synchronize changes between multiple systems - consolidation of finance, marketing and sales, human resource, and manufacturing applications They enable standard product naming/coding. They provide a comprehensive enterprise view (no "islands of information"). They make real - time information available to management anywhere, anytime to make proper decisions. They protect sensitive data by consolidating multiple security systems into a single structure Disadvantages Customization is problematic. Re - engineering business processes to fit the ERP system may damage competitiveness and/or divert focus from other critical activities ERP can cost more than less integrated and/or less comprehensive solutions. High switching costs increase vendor negotiating power vis a vis support, maintenance and upgrade expenses. Overcoming resistance to sharing sensitive information between departments can divert management attention. Integration of truly independent businesses can create unnecessary dependencies. Extensive training requirements take resources from daily operations For more Information kindly visit http://riinfotech.com/erp-solutions.php OR Contact us at Renderindia Infotech 104/105, Hilton Center, Plot No. 66, Sector - 11, C.B.D. Belapur, Navi Mumbai - 400614 Tel.: 022- 6609 7777 Email: [email protected] -- You received this message because you are subscribed to the Google Groups "it req" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/it-req?hl=en.
