ERP software integrates all facets of an operation, including product planning, development, manufacturing processes, sales and marketing. It gives a company an integrated real-time view of its core business processes such as production, order processing, and inventory management.
ERP software is used to track business resources and the status of commitments made by the business (such as customer orders, purchase orders, and the employee payroll). No matter which department (manufacturing, purchasing, sales, accounting etc.) has entered the data into the system. ERP facilitates information flow between all business functions inside the organisation and manages connections to outside stakeholders.
Companies consider the ERP system a vital organizational tool because it integrates varied organizational systems and enables flawless transactions and production.
ERP Software Modules
ERP software typically consists of multiple enterprise software modules that are individually purchased, based on what best meets the specific needs and technical capabilities of the organisation. Each ERP module is focused on one area of business processes, such as product development or marketing. Some of the more common ERP modules include those for product planning, material purchasing, inventory control, distribution, accounting, marketing, finance and HR.
Benefits of Using ERP Software
- ERP can greatly improve the quality and efficiency of a business.
- ERP provides support to upper level management to provide them with critical decision making information.
- ERP also creates a more agile company that better adapts to change.
- ERP can improve data security.
- ERP provides increased opportunities for collaboration.