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ERP (Enterprise resource planning)

Enterprise resource planning is a mechanism which is developed and implemented in are in business operations to manage and to provide ‘one-stop’ solutions to various crucial elements such as:

  • software systems for business management
  • Supporting modules for vital functional areas such as
    • Planning
    • Manufacturing,
    • Sales & marketing,
    • Distribution & transportation,
    • Accounting & financial, human resource management,
    • Project management
    • inventory management and service & maintenance
    • transportation and e-business.

The ERP provides a mechanism to various activities transparent integration of modules, providing the flow of information between all involved functions within the enterprise in a transparent manner. A properly implemented ERP system can deliver good results and drastically improve the company’s ability to reduce costs, run leaner, and provide good customer service.

Key takeaways from ERP and they are:

  • Reduced the use of paper documents by providing on-line formats for quickly entering and fetching information.
  • Enhanced cost structure
  • Increased efficiency in business processes – greater accuracy of information with detailed content and better presentation.
  • Enhanced customer service mechanism
  • Standardize and speed-up manufacturing process

The internal architecture of ERP encompasses key modules such as:

  • Data warehouse
  • Strategic enterprise management
  • Data mining
  • Advanced planning and scheduling
  • Transactional applications
  • E-commerce
  • CRM
  • Finance and accounting

 

Looking at the myriad advantages and exponential growth scenarios, we can clearly say the ERP is the next big thing in the industry irrespective to its core domain such as food, IT, automotive, manufacturing, supply chain system, and many more.

However, unfortunately, there are few pain points associated with ERP that need to addressed and those are:

  • High on the cost – The ticket size in high
  • Difficult to implement
  • Needs change management pre and post implementation

Having said that but from since inception, the ERP has given tremendous benefits and as a result of the same. The market for ERP systems has shown exorbitant growth in the recent times and projected to reach the market size of ~50 billion by 2024.