ERP  ENTERPRISE  RESOURCE  PLANNING

 

Think about all the core processes needed to run a company: finance, HR, manufacturing, supply chain, services, procurement, and others. At its most basic level, ERP integrates these processes into a single system. But new ERP systems are anything but basic. They provide visibility, analytics, and efficiency across every aspect of a business. Using the latest technologies, ERP systems facilitate the flow of real-time information across departments, so businesses can make data-driven decisions and manage performance – live.



ERP benefits

An ERP system is made up of enterprise resource planning applications (“ERP modules”) that talk to each other and share a database. This means you can eliminate information silos between departments and give everyone a single source of truth. Your system can automate your core business processes and help you ensure regulatory compliance, reduce risk, fast-track reporting – and so much more.


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examples of ERP system

ERP systems usually include applications for accounting, human resources, sales CRM, and supply chain management. But you can combine different modules to better meet your needs. For example, you could add ERP components for e-commerce, inventory and order management, and fulfilment. Or include applications designed for a wide range of industries, from manufacturing to retail.


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ERP business value

It’s impossible to ignore the impact of ERP in today’s business world. As enterprise data and processes are corralled into ERP systems, businesses are able to align separate departments and improve workflow, resulting in significant bottom-line savings. Examples of specific business benefits include.


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Multi-tiered ERP systems

The most common ERP deployment, either on-premises or cloud-based, is a standard monolithic system from one vendor, generally a large legacy vendor. However, many organizations now run multiple ERP systems under one environment, commonly known as two-tier (or multi-tier) ERP. Reasons for this include geographic differences in the organization, different divisions running different systems or company mergers for which various systems have been brought into one environment. These deployments often have one large, "Tier 1" ERP that runs across the organization and includes functions that are critical to the organization as a whole, and one or more other ERPs, called Tier 2, that run less critical functions, or ones that are specific to departments.


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Key ERP software modules

The ERP software modules that a company selects often depend upon the specific business processes it wants to improve, and also upon whether the company sells products or services. Businesses that sell products often have manufacturing, supply chain and distribution functions that the ERP modules must address. For organizations that sell services, ERP capabilities that support service level agreements (SLAs), field services and sales operations are very important. In order for an ERP software deployment to be useful, software modules needs to be loosely coupled and integrate easily with other software systems the organization uses. Core modules included in many ERP software products include: Finance - gathers financial data and generates reports such as ledgers, trail balance data, overall balance sheets and quarterly financial statements. Human resource management - gathers data and generates reports about such things as employee recruitment, performance reviews, training and professional development, performance reviews, mediation and exit interviews. Inventory management - gathers data and generates reports about non-capitalized assets and stock items. Supply chain management - gathers data and generates reports about materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer.


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ERP vendors

There are many ERP vendors with a wide variety of functions and on-premises or cloud deployment options. The most widely deployed legacy platforms are SAP, Oracle and Microsoft Dynamics, all of which have multifunction ERP systems and on-premises and cloud deployment options. Their customers range from large enterprises to small and medium-sized businesses.


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