Enterprise Resource Planning, or ERP as it is simply abbreviated, is the software that deals with integrating all the core processes involved in business management, including but–not limited to–product planning, manufacturing, marketing, shipping, finance and service delivery.
ERP can also be looked at as a subsection of business management software, which comes in the form of an application suite that organisations can use to collect, manage, store and decode the data they receive through various business activities.
Core Value to Businesses
ERP plays a central role in business management, at its core, the software helps employees to effectively break down the barriers that exist between business units. To do this, the software:
– Provides collective, real-time views of the data that companies need to address rising concerns more proactively. This is particularly important in driving improvements.
– Helps to improve financial compliance at minimal risks and with regulatory standards.
– Helps to improve the quality of customer service offered by a company by providing one source for relationship tracking and the other one for billing.
– Helps to automate basic business operations such as the order to fulfilment, leads to cash, and procure to pay process.
ERP is the software that lets employees gain access to accurate information that they can use to make better business decisions. Even better, the software also helps employees to eliminate redundant systems and processes, the result of which the overall cost of running a business is reduced tremendously.
ERP Modules
ERP modules refer to all the functional areas covered by the software or any business functionality that goes through the ERP process, they include:
Financial Accounting This encompasses fixed assets, general ledger, and other payables including receivable cash applications, vouchers , financial consolidation and cash management.
Management Accounting This covers anything relating to budgeting, activity based costing and cost management.
Human Resources Takes into account all matters pertaining to recruiting, training, payroll, pension plans, retirement, separation and diversity management.
Manufacturing Covers anything relating to engineering, work orders, scheduling, work flow management, production life cycle and quality control.
Data Services Deals with self service interfaces that customers, suppliers and employees will be using. Project Management This one helps to organise anything dealing with project planning, project costing, billing, work breakdown structure, performance units and activity management.
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