ERP STANDS FOR…
If you are new to ERP software, than the first question which comes in our mind is what does ERP stands for, full form of ERP. By reading this article you are come to know exactly what does an ERP stand for.
ERP (Enterprise Resource Planning) It is a customizable suite of business planning and financial accounting software that integrates your company’s core processes and specialized capabilities, and if used correctly, streamlines supply chain management.
An enterprise ERP system is an information system that incorporates enterprise-wide internal and external information systems into a single unified solution.
In the past years, ERP was mainly used in manufacturing process. Now the ERP system is involved in all business operations. The important modules of ERP systems are Sales orders (SO), Purchase Orders (PO), CRM, Human Resources, etc.
ERP systems integrate the software, hardware and network resources essential for building an enterprise resource planning (ERP) information system solution. ERP systems aim to streamline business processes.
An ERP system generally includes all the IT systems that enable ERP software to execute and operate efficiently. An ERP system allows an organization to design, execute, operate and maintain an enterprise information system. This system includes the software that provides business functions and processes, computing hardware for hosting and executing software applications, and back-end network architecture for data communication across and within information systems.
An ERP system may provide services and solutions such as accounting information systems, financial information systems, production information systems, marketing information systems and human resource information systems. These systems are integrated within separate departments in an organization but are managed through a central administrative console for each module.
As the chief operations manager, a correctly configured ERP system will produce detailed real-time business analytics from planning and sales, through warehouse operations, to delivery that is transparent to all the users who need to know. It can track invoicing and approvals, the progress of orders, and anything that affects your company’s cash flow.
ERP software is not a Fortune 500-only tool either. Travel agencies, advertisers, and especially manufacturers, great and small, are feeling the digital age disruption and are getting out of the excel spread sheet and whiteboard world and automating processes. The time saved not only saves all involved money, but it can also give you the time to analyze your business and innovate.
Today’s small and medium businesses have a wide selection of high-powered enterprise resource planning solutions (ERP) that allow them to manage data across financials, manufacturing, inventory, shipping, and other aspects of the business. Some vendors offer self-hosted solutions while others provide a cloud-based model.
Whichever platform suits your situation, most likely, the price you’re seeing on the product website or what’s being peddled to you is not the final cost. It doesn’t matter whether the difference is between ERP or accounting software. Here are seven hidden costs that can easily pad the published price of most ERPs.
With ERP, each department can have their own system but they can share and communicate information with every one in the organization. Authorized users are only allowed to access the data in system and unauthorized users are strictly prohibited to access the information
WHAT WILL BE YOUR COMPANY’S ROI TO IMPLEMENT ERP SYSTEM ?
No one is going to tell you that there is an easy, inexpensive way of implementing and ERP software system. What you are going to hear is when implementation is done correctly, and is customized to what you need now and can scale up to what you will need in the future, you will see a return on investment.
Your ROI is going to arise from three basic factors: being able to correctly forecast sales, product line profitability, and material and human resources requirements; second – from data transparency you and your employees will find the inefficiencies, streamline your processes, thus reducing time, money, and effort spent on current production, which will result in your company being able to keep a lean management team as you grow, further reducing future costs.
If you are a B2B, and you really want to streamline processes, you can even digitally integrate customer relations, supplier and/ or third-party provider functions into your ERP system, so not only will everyone be on the same page, but the customer experience and thus loyalty should improve as well.
An ERP software system will allow you and your CFO to analyze your business in real time, react to market drivers, and innovate your processes and products, and deliver on the CEO’s vision.
BEFORE YOUR FIRST CONTACT WITH AN ERP VENDOR
It is imperative that the departmental heads, managers, or team leads prepare a detailed GAP analysis on where the present legacy software systems work and why, and where they fall short and impacts. These analyses should also uncover where the company’s strengths and weaknesses lie, especially the costs and the resource allocation.
As this is being done, always keep clear and present how you and the CEO want the company to evolve, because any ERP system purchased must be able to develop with you. While you and ultimately the CEO are the decisions makers, instituting a collaborative effort, even a special team drawn from the different core departments, will set the tone, support positive communication, and increase buy-in from your workforce on your company’s future.
If you want to include interoperability with your customers, suppliers and third party vendors, speak with them as well. They can give you a perspective on what they need, and how and when they need it.