The Benefits Of ERP - Enterprise Resource Planning

Technology has changed the way we work in more ways than one. Starting from strategic planning, manufacturing, inventory control, marketing, advertising, accounting, logistics, communications, customer relationship management to market research and many more areas, information technology has completely changed the way we operate both in our personal as well as professional lives.

ERP Overview

ERP, or Enterprise Resource Planning, is one such modern application of Information Technology, which is one of the most commonly deployed software systems, used in a variety of industries and organizations. Benefits of Business ERP Software include providing integrated business solutions with multiple modules of software packages, which aim to serve and support many business functions like manufacturing, accounting, purchasing, warehousing, logistics, customer relationship and human resource management.

ERP Software

Originally evolving from the manufacturing industry (ERP Manufacturing Software), ERP provides packaged softwares and non-proprietary packages, developed for single-customer use. The software modules of ERP can be altered through the provider's proprietary tools or through standard programming languages.

ERP History

The background history of ERP is interesting. During the '60s the manufacturing industry focused its activities around inventory control. Soon the focus shifted to Material Requirement Planning (MRP) planning in the '70s, which translated the schedule built for the end-products into materials requirement for the assembly lines, with regard to materials procurement and purchase planning. During the '80s the concept of MRP (manufacturing Resource Planning) II was developed which enabled the system to cover the complete range of business activities- engineering, finance, human resources, enterprise solutions, etc. This integrated approach became to be known as ERP.

ERP Business Software

The ERP software available today enhance the business performance of an organization in three basic areas: better resource planning, efficient management and integrated operational control. There are many software modules of the ERP which can integrate the activities of multiple departments - product planning (erp planning), materials purchasing, control of inventory, logistics and distribution, tracking of goods and customer relationship management. Most of the software systems include other common application modules like human resources, accounting (erp accounting) and finance.

Benefits Of ERP

Probably the biggest business benefit of the ERP is that the integration of multiple information systems within one organization brings about enhanced clarity, understanding and standardization within the company. When the organization works in unison, it would automatically result in better manufacturing and marketing practices, standardization of processes, free flow of information, clarity of roles and easy and wide-spread identification of the corporate goal. By creating more professional and efficient work processes, companies can fully concentrate on maximizing profits, serving customers better and enhancing their market share within the industry they operate.