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Enterprise Resource Planning (ERP)

Enterprise resource planning (ERP) is a software that integrates the various functions and processes that enterprises use to collect, store and implement to run the organization smoothly. The process includes accounting, inventory, technology, customer relationship management, sales, human resources and many others. The various functions performed in each of the above divisions are integrated and processed into one single system and streamlined across an enterprise. ERP has been explained in different ways in by different sources and the implementation has been varying based on the nature of business an enterprise is dealing in. ERP has come into existence in the 1960s and has undergone transformation in different modules and has now reached a stage where it embraces business Intelligence (BI) and handling front office functions.  ERP is now being popularly implemented as two-tier ERP, mobile ERP, social ERP and cloud ERP.

The primary objective of the ERP is to have a shared database which gives details of the functions of each unit of an enterprise. Since the information is meted out by integrating the different divisions, the information can be implemented by the individual units for reference and use as per their requirements. Enterprise resource planning software thus offers automated consolidated information of the various back-end units and eliminates the need of employees maintaining individual spreadsheets and databases unit wise which again needed to be merged manually and generate a consolidated report.

ERP has streamlined the entire process and has many advantages like informing the limitations of each unit and consider various ways for improvement, increase and improves corporate resources and utilization for better customer service and satisfaction, gives the employees a better understanding of the system and help them in taking decisions faster. The ERP software can help in discard the redundant processing systems and implement the latest systems which can drastically cut down costs in an enterprise.

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