Enterprise resource planning (ERP) integrates internal and external management information across an entire organization, embracing finance/accounting, manufacturing, sales and service, CRM, etc. ERP systems automate this activity with an integrated software application. Its purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders.
ERP systems can run on a variety of hardware and network configurations, typically employing a database to store data.
ERP systems typically include the following characteristics:
An integrated system that operates in real time (or next to real time), without relying on periodic updates.[citation needed]
A common database, which supports all applications.
A consistent look and feel throughout each module.
Installation of the system without elaborate application/data integration by the Information Technology (IT) department.
Functional areas
Finance/Accounting
General ledger, payables, cash management, fixed assets, receivables, budgeting, consolidation
Human resources
payroll, training, benefits, 401K, recruiting, diversity management
Manufacturing
Engineering, bill of materials, work orders, scheduling, capacity, workflow management, quality control, cost management, manufacturing process, manufacturing projects, manufacturing flow, activity based costing, Product lifecycle management
Supply chain management
Order to cash, inventory, order entry, purchasing, product configurator, supply chain planning, supplier scheduling, inspection of goods, claim processing, commissions
Project management
Costing, billing, time and expense, performance units, activity management
Customer relationship management
Sales and marketing, commissions, service, customer contact, call center support
Data services
Various "self-service" interfaces for customers, suppliers and/or employees
Access control
Management of user privileges for various processes
Advantages
The fundamental advantage of ERP is that integrating the myriad processes by which businesses operate saves time and expense. Decisions can be made more quickly and with fewer errors. Data becomes visible across the organization. Tasks that benefit from this integration include
Sales forecasting, which allows inventory optimization
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 systems centralize business data, bringing the following benefits:
They eliminate the need to synchronize changes between multiple systems - consolidation of finance, marketing and sales, human resource, and manufacturing applications
They enable standard product naming/coding.
They provide a comprehensive enterprise view (no "islands of information"). They make real - time information available to management anywhere, anytime to make proper decisions.
They protect sensitive data by consolidating multiple security systems into a single structure
Disadvantages
Customization is problematic.
Re - engineering business processes to fit the ERP system may damage competitiveness and/or divert focus from other critical activities
ERP can cost more than less integrated and/or less comprehensive solutions.
High switching costs increase vendor negotiating power vis a vis support, maintenance and upgrade expenses.
Overcoming resistance to sharing sensitive information between departments can divert management attention.
Integration of truly independent businesses can create unnecessary dependencies.
Extensive training requirements take resources from daily operations
For more kindly visit
http://www.riinfotech.com/erp-solutions.php
ERP systems can run on a variety of hardware and network configurations, typically employing a database to store data.
ERP systems typically include the following characteristics:
An integrated system that operates in real time (or next to real time), without relying on periodic updates.[citation needed]
A common database, which supports all applications.
A consistent look and feel throughout each module.
Installation of the system without elaborate application/data integration by the Information Technology (IT) department.
Functional areas
Finance/Accounting
General ledger, payables, cash management, fixed assets, receivables, budgeting, consolidation
Human resources
payroll, training, benefits, 401K, recruiting, diversity management
Manufacturing
Engineering, bill of materials, work orders, scheduling, capacity, workflow management, quality control, cost management, manufacturing process, manufacturing projects, manufacturing flow, activity based costing, Product lifecycle management
Supply chain management
Order to cash, inventory, order entry, purchasing, product configurator, supply chain planning, supplier scheduling, inspection of goods, claim processing, commissions
Project management
Costing, billing, time and expense, performance units, activity management
Customer relationship management
Sales and marketing, commissions, service, customer contact, call center support
Data services
Various "self-service" interfaces for customers, suppliers and/or employees
Access control
Management of user privileges for various processes
Advantages
The fundamental advantage of ERP is that integrating the myriad processes by which businesses operate saves time and expense. Decisions can be made more quickly and with fewer errors. Data becomes visible across the organization. Tasks that benefit from this integration include
Sales forecasting, which allows inventory optimization
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 systems centralize business data, bringing the following benefits:
They eliminate the need to synchronize changes between multiple systems - consolidation of finance, marketing and sales, human resource, and manufacturing applications
They enable standard product naming/coding.
They provide a comprehensive enterprise view (no "islands of information"). They make real - time information available to management anywhere, anytime to make proper decisions.
They protect sensitive data by consolidating multiple security systems into a single structure
Disadvantages
Customization is problematic.
Re - engineering business processes to fit the ERP system may damage competitiveness and/or divert focus from other critical activities
ERP can cost more than less integrated and/or less comprehensive solutions.
High switching costs increase vendor negotiating power vis a vis support, maintenance and upgrade expenses.
Overcoming resistance to sharing sensitive information between departments can divert management attention.
Integration of truly independent businesses can create unnecessary dependencies.
Extensive training requirements take resources from daily operations
For more kindly visit
http://www.riinfotech.com/erp-solutions.php
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