Enterprise Resource Planning (ERP)
ERP, short for Enterprise resource planning is a management system application for enterprise/company management or business processes, which may include Human Resource Management(HRM), Customer Relationship Management(CRM), Supply Chain Management, Inventory Management, Financial Management etc.
Why is it important?
The importance of ERP in today's business world cannot be ignored. As data and processes of a Company/enterprises are all confined and managed by the ERP system, it eased the co-ordination of separate departments and improves workflows. It also helps the management of the company/enterprise to better understand and analyze the data and process which in turn helps in better planning for future of the company.
ERP system can improve the planning and insights of the business from the up to-date reports generated by the system. It lowers the management and operational cost as it integrates and simplifies the management process. Using ERP can guarantee the security of data as it allows the access of data to only the authorized users.
As companies' life span is increasing, the operations and procedures of these companies are also getting complex and involved. Thus ERP helps in managing these complex processes of a company which help in giving more control over the process and also save time of HRM professionals. ERP helps in reducing the total cost of ownership(TCO) as it improves efficiency and effectiveness of operations.
An enterprise resource planning software system is a set of integrated software applications and programs used to maintain corporate information.
ERP software is the backbone of enterprises, and it performs a variety of functions. Most ERP systems help companies plan, source, manufacture, and distribute products and services.
ERPs help companies to manage their financing processes as well as their transactions with customers. These systems also assist companies in the supply chain management process from initial product design through production and delivery to customers. ERP systems also help companies track inventory levels as well as purchase orders from suppliers and distributors. These systems can also determine shipping schedules based on available inventory levels in warehouses or in transit to customers.
ERP software may also be used by human resources departments within an organization for employee benefits planning and tracking.