An Enterprise Resource Planning (ERP) program is enterprise software that controls business processes. It is the world largest software and was started in the 1960s by Gartner Group. Enterprise Resources Planning software focuses on bringing together different functions and departments of an organization into one computer system. This software aims to bring together the sales, logistics, Human Resource, production, and finance department into an integrated system. ERP software enables a company to collect, organize, and report information within a company. It helps in the implementation of all functions of a company.
Types of ERP programs
Enterprise Resources Planning programs have been common mostly in big companies which are spread globally. Recently, however, there has been a development of ERP systems that are used by small and medium sized companies. Industry Specific ERP systems are used in large corporations that have unique and specific needs. Web-Based ERP is more complex programs that will require high-end computers to run. They are remotely operated and free to access form anywhere. Small Business ERP systems are programs that are not fully automated. However, the systems will cover everything in the production management chain and also the customer relations but are scaled-down models.
Enterprise Resource Management Full Form is by companies to improve performance by controlling the financial activities using one software system on the PC. This result to better communication between departments, better interconnectivity, and smoothen start-to-finish operations. It helps in tracking the production process from end to user. Using ERP helps a customer to place an order and pay for them online, and the order is moved from production, assembled and shipped to the customer. It also helps to break communication barriers within an organization. It brings together the whole system as a group where they can communicate effectively. ERP also help to reduce the cost of resources used in an organization. It also helps in the management of data used in a company. Within a single system, there are many specific management practices that need to be maintained, ERP helps to maintain them without requiring different software packages. ERP reduce power consumption in a company as it can be used as a server-based.
Uses of Full Form ERP systems
ERP system helps a company to manage its internal and external resources. A company will implement this technology for specific reasons which may include cost reduction and production enhancement. Most of the ERP system programs available offers the same basic functionality, but specific operation and feature may differ. A company can use ERP program to integrate its aspects operation thus reducing the cash to order cycle. The speed at which a company gets paid for its services and good will be determined by the order-to-cash cycle.
Companies that have a faster cycle will automatically experience an increase in cash flow. ERP programs will help to reduce the gaps between systems of production thus saving the production time. Customers will be able to receive the services easily and within a short time. ERP system helps a company to be able to use the same system of management over different geographical locations. The system allows all integrated outlets of the company to share the same system of management and data. Products can move faster, orders are processed quickly, and the customers will be able to get their products sooner. The system allows access to information across the companies. As information is coming from one source, it is more accessible and accurate therefore it can be reliable. With ERP system, a company will be able to generate up-to-date information. ERP system helps to streamline business processes, methodologies, and whole operations.
Companies can reduce the cost of production and minimize operation and production time when activities are integrated by a common technology. To achieve full benefits of ERP system better planning is required to minimize the risks of failure. ERP system helps in fast decision-making in a company. As data is consistent, the speed and quality of decision-making will improve. A company can identify potential things that affect the productivity effectiveness and eliminate them. It provides efficient financial control as managers will receive up to date information and work in progress thus improving planning.
Effective changes can be put in place as the managers have the overall pictures and can make effective decisions in investments and resources allocation. They can change and respond quickly to business opportunities. ERP system will help in transformation on different aspects of the production operation. It helps to reduce duplication in processes and administration making a company can concentrate on the more important operations, this help to increase efficiency. Every member of the production team can make a great contribution to the system thus making the company profitable and efficient.
A company should identify its key priority to be able to weight successfully the risks versus the reward of ERP software programs. It must have a proper management strategy and resources for training the workers. Any program can fail if not executed correctly. Therefore, it is advisable to consult with a specialist who will help your company in ERP software programs. This will ensure that the company selects the right and the best ERP program which will bring desired results.
Different software programs will best fit in certain companies depending on the type and the complexity of production process of the company. ERP software program is the backbone of the production process in a company, and it is usually a convenient investment.