ERP is a multi-modular application that integrates business processes and optimizes resources available to the enterprise. The resource planning systems use a unique database to store data from various system modules such as Manufacturing, Commercial, Human Resources, Financing ans so on.
Functional ERP modules cover: production planning, the management of aquisitions, inventory management, interaction with suppliers, customer relationship management, order tracking, financial management, human resources management. Assuming that the whole is more fundamental than the sum of the parts, like I read somewhere, the ERP’s integration and synchronization of its functions inside a company is an excellent advantage, because this can be considered a “vehicle” for information, streamlining the exchange of data between departments. It unites all economic practices in one family of software modules ; the modules are running on the network client server, it creates a unique database, logical database, in which the data are processed only once.
Someone could ask: Yes, but how come exactly ERP is good for this. Aren’t they other software programs in this world? Of course there are many programs, but this one has some advantages, which place it higher than its competitors. Here are some benefits of such a system: the connectiosn with customers and suppliers are tied, by creating an efficient chain, by reducing the production costs and inventories, the system uses an integrated resource planning, improving the overall productivity, maximizing the profits through an increased flexibility and responsiveness to market demands.
The effects are felt in terms of reduction in the chain from the actual order to the delivery of the product or service, by reducing the waiting times, providing an increased quality, including the customer too in this process. Like the companies use the Intranet for their own policies, now when talking about clients, they started to use the Extranet.
There are great providers of ERP solutions, such as SAP in Germany, SSA Global Technologies, Oracle or Microsoft Dynamics platform. The prices range from 300000 euros to 200 million euros, according to a Meta Group study, based on: the company size, the specific activity, the degree of geographical dispersion, the technological infrastructure. To implement an ERP solution, a company must ask itself important questions about every department that it has and about how necessary a solution like this really is.
When a company decides to use an ERP solution, it must asked itself if they are ready for this system and how this system is going to help the company. This is the time when the manager of the company must name a head for running the whole ERP group inside the company.
Also, the company should analyze very well this decision and see if they really have the ability and experience to implement an ERP solution. After the decision is made, the ERP process will be on its way, but the results will need more time to be seen.
