Enterprise Resource Planning

ERP System - What is SAP Modules

Enterprise Resource Planning or ERP is a complex subject due to its sheer power as a business tool. It is something that can transform one’s business as long as it is implemented properly. The software integrates the processes that are vital in the daily operation of a business into a single system. These include human resources, customer relationship management, and a lot more. The software streamlines the processes and data across the company.

While there are different definitions of Enterprise Resource Planning, one thing that all ERP software have in common is a shared database that can be used for different functions as required by the various business units. That means that workers belonging to different units can gain access to the same information as required by their needs.

In simple terms, ERP system tries to integrate all departments of a company onto a single system that can serve the specific needs of the different departments. When the right system is installed, the company will reap huge rewards.

In the past when a customer places an order, the order will take a journey from one department to the next. The data is entered into various computer systems. No one knows the status of the order because the systems of each department are not interconnected with each other. This process causes a lot of delays and misplaced orders. It is also prone to human error.

Enterprise Resource Planning gets rid of the standalone systems of each department and replaces them with a unified program that’s divided into modules designed for each department.

The implementation of an Enterprise Resource Planning (ERP) system to overhaul and automate business processes is a tactical investment. Choosing the best ERP Software for your business and buying the system that is proper are vital to success.

Value of Enterprise Resource Planning to Businesses

Enterprise Resource Planning promotes cohesiveness between the different business units. It breaks down the barriers and allows workers to be more efficient with their jobs.ERP software provides a global view of data in real time. It allows businesses to find out areas of concerns right away and improve the overall efficiency of the operation.

The ERP system must be fully integrated with all aspects of the business, from planning and scheduling to the manufacturing and distribution of the products. The system should extend to the entire supply chain. This will ensure the efficiency and visibility across the supply chain.

Enterprise Resource Planning automate the core business operations such as procure-to-pay, lead-to-cash, and order-to-fulfillment processes. By automating the business processes, they are more efficient and less likely to have errors. It allows the business to concentrate on making money.

ERP allows the business to create high-quality reports. They can also conduct analysis on the overall performance of the company.

These are the advantages a business can get by implementing an ERP system. With an Enterprise Resource Planning solution, workers have access to accurate data all the time that allows them to make smarter decisions. It saves the business money by removing redundant systems and processes. An ERP software is a good investment that helps improves the business’ bottom line.

Benefits of ERP

It provides improved planning and coordination across all the functional departments which improve overall business efficiency. It facilities easy and smooth handling of day-to-day business activities. Here are some of the benefits of implementing Enterprise Resource Planning software in your organization.

  • Improved Strategic Planning
  • Improved Productivity and operational efficiency.
  • Improved financial management and corporate governance.
  • Highly help reduce the operation costs.
  • Real-time information throughout the organization at all levels.
  • Better visibility of business processes.
  • Common best practices and proven and tested methodologies can be customized in ERP Systems.
  • Facilitate day-to-day management
  • Strategic planning.
  • Monitoring and Control.
  • Streamline quality control in the business processes.
  • Proper Analysis and Reporting for long term planning.

ROI Factors to consider while Implementing ERP

  • Lower Inventory costs through better efficiency and visibility.
  • Lower savings through reduced reworks.
  • Remove non-valued added activities.
  • Reduced manual intervention.
  • Enable employees to use more analysis rather than transactional routine work.
  • Improved decision making with the use of real-time data.

There are different ERP Vendors to handle all these processes from one desk and some of these vendors are moving towards cloud ERP solutions.

6 thoughts on “Enterprise Resource Planning

  1. Thanks a lot for this article. I was trying to make a presentation to my class and this pretty much sums up everything i need. Good work.

  2. Hi, good efforts you have done. keep SAP ERP TERP10 question… or any other helping material about TERP10 paper. Regards, Kamran

  3. nice/good article for SAP bigners,
    I appreciate yr struggle.
    I will take training for SAP (Database) moudle.
    Pls help me if u hv sufficient tutorials or articles

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