E R P: Enterprise Resource Planning

ERP- Enterprise Resource Planning is a term originally derived from Material Requirements Planning (MRP) followed by Manufacturing Resource Planning        

“Companies are realizing the significance of ERP as an essential pillar in building the real-time enterprise. Real-time enterprises need extendible business functionality based on a solid but flexible IT infrastructure that allows them to quickly adapt business processes and add functionality without having to overhaul their underlying technology foundation”.

 

•         ERP systems typically handle the following for a company

–        Manufacturing

–        Distribution

–        Inventory

–        Shipping

–        Invoicing

–        Accounting

–        HR etc.

 

ERP System Integrates internal and external management information across an entire organization, embracing finance/accounting, manufacturing, sales and service, customer relationship management,supply chain, HR(All required resources to run the Enterprise) 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 as a repository for information.

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.

·       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.

·       General ledger, payables, cash management, fixed assets, receivables, budgeting,

         consolidation. etc.