Enterprise Resource Planning (ERP)
ERP is an integrated, real-time, cross-functional enterprise application, an enterprise wide transaction framework that supports all internal business processes of a company.
It supports all core business processes like sales order processing, inventory management and control, production and distribution planning and finance.
Need of ERP
Business integration and automated data update
Linkage between all core business processes and easy flow of integration
Flexibility in business operations and more agility to the company
Better analysis and planning capabilities
Critical decision making
Use of latest technologies
Feature of ERP
Scope of ERP
Finance: Financial accounting, Managerial accounting, treasury management, asset management, budget control, costing and enterprise control
Logistics: Production planning, material management, plant maintenance, project management, activities and events management etc.
Human resource: Personnel management, training and development etc.
Supply Chain: Inventory control, purchase and order control, supplier scheduling, planning etc.
Work flow: Integrate the entire organization with the flexible assignment of tasks and responsibility to locations, position, jobs etc.
Advantages of ERP:
Reduction of lead time
Reduction of cycle time
Better customer satisfaction
Increased flexibility, quality and efficiency
Improved information accuracy and decision making capability
Improved resource utilization
Improve supplier performance
Reduced quality costs
Forecasting and optimization
Disadvantage of ERP:
Expense and time in implementation
Difficulty in integration with other system
Risk of implementation failure
Difficulty in implementation change
Risk in using one vendor