Enterprise Resource Planning (ERP)

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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.

erp_system

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

  • Competitive advantage

  • Use of latest technologies

Feature of ERP

feature_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

  • Onetime shipment

  • Improved resource utilization

  • Improve supplier performance

  • Reduced quality costs

  • Decision making

  • Forecasting and optimization

  • Better transparency

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



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