What is ERP?
Enterprise Resource Planning abbreviated as ERP is one of the most authentic and enhanced tool for commerce, trade and business. Integration is the key to ERP. It is a way to integrate the data and transactions of an organization comprising of the necessary hardware and software into a unified database system. Its main goal is to maintain these data’s in an easy and proper manner so that in the future modifications to such data can become easy.
With the inclusion of perfect data, ERP can give the best of solutions for any problem and becomes the organizing force of the company. This all is done with the help of SAP i.e. System Application and Products which creates a centralized application for all the databases in the systems.
Use of ERP
ERP is used in small and medium sized companies to improve various functionalities of their company and help them improve their services to the customers. ERP helps to organize the following things in an organization:
It helps to reduce the organizations operational and maintenance costs by combining the efforts of various departments of the organization and increasing their efficiencies. The centralized working of the systems controls the inventory and other processes including marketing and labour costs.
Any phase of a company or organization is incomplete without planning. Planning defines all the goals to be achieved by a company. This helps the staff to implement different plans which will be helpful for the company and its projects. ERP can thus perform the core business activities if planning is done.
Quick Decision Making
ERP software gives a boost to the day-to-day activities carried out in the company. This helps the managers to take immediate decisions managerial control for the required project. It also keeps control of all the cost activities in the organization.It also helps in bridging the gap between various companies and collaborate them.
Open System Architecture
ERP provides an open system architecture which provides automatic introduction of the latest technologies like Internet, Intranet, web portals, and E-Commerce. It also supports tools like Reports, Data Binding, Information Systems and many other techniques. Through this best ERP solutions are provided addressing the requirements of the company.
ERP is used mainly to
- Improve functionalities.
- Improve planning and productivity.
- Boost financial performances.
- Build reliability and customer services.
Where is ERP used?
ERP is mainly famous in the fields such as Human Resource Management, Finance Management, Customer Relations Management, Warehouse Management and many more management fields.
It is also an amalgamated service that is implemented in an organization to check the monetary assets, supplies etc. It is also used in small and medium scale companies to improve their business solutions and give a rise to their ideas on a proper platform.