"ENTERPRISE RESOURCE PLANNING(ERP)"
ERP is referred to as a part of business management software consist of integrated applications. Through ERP software an organization can gather, store, manage, and process data from many business activities. Enterprise system software is a multibillion-dollar industry that produces components supporting a variety of business functions. IT investments have, as of 2011, become one of the largest categories of capital expenditure in United States-based businesses. Through this software, organizations are enhancing their efficiency by producing error-free transactions and more production. First, big multi-national companies tend to use ERP system. However, the use of ERP in small enterprises is also growing. ERP differs from traditional systems as it uses computer hardware and networks to operate.
Why ERP is best choice?
An ERP system consists of following characteristics:
• A combined system
• Operates in real time
• A shared database on which all the applications are compatible
• A persistent look and feel across each module
• Deployment options include: on-premises ad cloud hosting
ERP is serving in various areas like Accounting, Human resources, Manufacturing, Supply chain Management and Customer Relationship management (CRM). It covers Financial Accounting as well as Management Accounting. CRM involves customer contact, services, sales and marketing. ERP helps to develop better understanding with the client which in return increases the sales and commissions. In project Management, ERP aid us in costing and planning of a project and assist to design Work Breakdown Structure (WBS), time and performance units.
ERP software has infinite benefits as it saves cost and time of organizations. Moreover, management is able to make decisions faster and with fewer errors. Data becomes visible across the organization. Following are some quintessential benefits:
• Sales forecasting, which could help to maintain inventory
• History of every transaction through relevant data compilation in every area of operation
• Order tracking, from acceptance through fulfillment
• Revenue tracking, from invoice through cash receipt
• Matching purchase orders (what was ordered), inventory receipts (what arrived), and costing (what the vendor invoiced)
ERP is robust system which makes it more productive and useful. ERP ensures data security in an organization and make sure that the company’s data will not be compromised. This system provides opportunity to employees to spend their high time collaborating on content rather than mastering the learning curve of communicating in various formats across distributed system. ERP help companies to improve their Key Performance Indicators (KPI’s).