WHAT IS ERP?
The term ERP (Enterprise Resource Planning) comes in its purest form to define systems designed to plan, monitor and manage the production resources. Historically, the development of the ERP systems includes several stages of the simpler inventory control programs such as MRP (Material Requirements Planning), MRPII (Manufacturing Resource Planning), ERP (Enterprise Resource Planning) and finally the new generation ERP software, encompassing Customer Relationship Management, Supply chain management, Business analysis and processes.
The recent understanding of ERP offers a new definition. The ERP systems represent a business platform for an integrated management, optimization, organization and automation of the processes and the information flows in any organization. These systems incorporate good business management practices and the modern information technologies.
All organizations strive for being more successful by relying for some decision-makings in management on the best practices from the respective business process. The constantly changing market relations and the dynamic growth of the competitors play an important role in the continuous development of the ERP systems. Nowadays the software solutions for management have to be more flexible, mobile and adaptable by gaining the maximum of what makes a company unique and by using its competitive advantage.
The up-to-date ERP development and implementation applies modularity in the structure in order to ensure a better integration and flexibility, each module being focused on a specific business process. A company comprises of many departments – Sales, Finances, Human Recourses, Production, Delivery and Logistics etc.
Today the information is one of the most crucial resources of a company and this fact determines the application of the ERP modularity and allows the construction of unified software platform that unites the different departments in such a way that they share data easily and communicate with each other. The ERP software facilitates time saving for the staff in different departments by automating the information flow in real time. Depending on the business processes in the company, a combination of modules can be used. The system has the possibility for extension by the means of specific applications and modules.
In the most cases ERP includes the following standard modules:
- Customer Relationship Management
- Manufacturing and Engineering
- Human Resource Management
- Asset Management
- Sales Management
- Financial Management
- Project Management
- Inventory Management
The ERP systems optimize the company processes, they save time, improve the finance management, the material and human resource management and they increase the business efficiency.
The benefits of using the ERP software are numerous. As a whole the following key advantages can be listed:
- Management and organization of customer and supplier relations ;
- Organization and synchronization of the information and activities between different company departments ;
- Resource planning / material, manufacturing, financial,human recourses etc. /
- Manufacturing process control;
- Documentation of the working processes in each moment of their implementation;
- Opportunity for Business Intelligence in all dimensions;
- Decrease of the time needed for decision-making in management;
- Opportunities to adaptation and extension;
- Integration with systems for inventory management automation, for production automation, for design and development, for accounting, mobile applications etc.
- Unlimited customer service of unlimited customers , as well remote workplaces;
- Opportunity to full exploitation of the up-to-date communication technologies such as Internet and e-commerce.
Nowadays ERP systems get more flexible and they implement almost all activities of the companies and combine various business systems – Customer Relationship Management, Business Intelligence, Business Process Management etc.
The deployment of one unified system allows the management of your business to become not only more structured but also provides flexibility and promptness in the decision-making related to the management.