ERP Overview and definitions

ERP focuses on trying to integrate departments and functions throughout a company. It attempts to integrate everything into a single system that can serve every department and functions needs.

ERP broken down simply is an application/system that both small and large companies are using today in order to streamline and integrate operation processes.

ERP is every business managers and executives dream. Just think if you were a manager and all the information you ever needed to do your job and help others do theirs, was right at your finger-tips and was available at every second you needed. ERP allows for this to happen.

IT allows for every piece of a company to integrate together and every function to share information allowing for executives, managers, production workers and customers/clients to execute and perform their job to the best of their ability.

Building a single software program that serves the needs of people in finance as well as it does the people in human resources and in the warehouse. Each of those departments typically has its own computer system optimized for the particular ways that the department does its work. But ERP combines them all together into a single, integrated software program that runs off a single database so that the various departments can more easily share information and communicate with each other. That integrated approach can have a tremendous payback if companies install the software correctly.

Take a customer order, for example. Typically, when a customer places an order, that order begins a mostl paper-based journey from in-basket to in-basket around the company, often being keyed and rekeyed into different departments' computer systems along the way. All that lounging around in in-baskets causes delays and lost orders, and all the keying into different computer systems invites errors. Meanwhile, no one in the company truly knows what the status of the order is at any given point because there is no way for the finance department, for example, to get into the warehouse's computer system to see whether the item has been shipped. "You'll have to call the warehouse" is the familiar refrain heard by frustrated customers.

ERP vanquishes the old standalone computer systems in finance, HR, manufacturing and the warehouse, and replaces them with a single unified software program divided into software modules that roughly approximate the old standalone systems. Finance, manufacturing and the warehouse all still get their own software, except now the software is linked together so that someone in finance can look into the warehouse software to see if an order has been shipped. Most vendors' ERP software is flexible enough that you can install some modules without buying the whole package. Many companies, for example, will just install an ERP finance or HR module and leave the rest of the functions for another day.

Enterprise Resource Planning (ERP) integrates core business areas such as manufacturing, distribution, financials and human resources.

ERP-systems also implement and automate business processes, putting them into a useful format that is standardized across the corporation and between their suppliers and customers. ERP-systems capture data about historical activity, current operations and future plans and organize it into information people can use to help develop business strategies.

In the ERP industry, the systems are often referred to as the 4M’s. Man, Money, Materials and Machines (Manufacturing). 

This type of system brings all four aspects of business together, giving them a synergistic value. ERP is an enabling technology that can give corporations a strong competitive edge. In addition, this technology is as close to virtual enterprises as business today has ever seen

Enterprise resource planning (ERP)- An enterprise-wide system that extends manufacturing resource planning (MRP II) by incorporating all system and organizational functions required to plan and support manufacturing, finance, distribution/logistics and additional areas such as engineering, maintenance, etc. It serves as the base repository for cross-functional data and defines a common usage of technology. 

ERP Software

Enterprise resource planning (ERP) software is modular and used most often to automate companies' internal business processes, particularly those of manufacturers. It helps them track orders, plan production schedules, and manage inventories. It is also used within finance and human resources departments. Because it is complex and expensive, many companies are turning to service providers who offer ERP services, which includes the ERP vendors themselves.

Enterprise Resource Planning Application (ERP) is a dynamic tool for managing multiple aspects of a firm’s

operations. ERP runs on an integrated database. The software package includes different modules for

the financial, logistical, production, marketing, and planning functions. Specifically, product planning,

parts purchasing, maintaining inventories, interacting with suppliers, providing customer service, tracking

orders, and many other aspects of business operations are targeted by this system to increase efficiency,

coordination, and profitability.

ERP (Enterprise Resource Planning) Definition...2

ERP is an industry term for the broad set of activities supported by multi-module application software that help a manufacturer or other business manage the important parts of its business, including product planning, parts purchasing, maintaining inventories, interacting with suppliers, providing customer service, and tracking orders. ERP promises one database, one application, and one user interface for the entire enterprise, where once disparate systems ruled. Taking information from every function it is a tool that assists employees and managers plan, monitor and control the entire business. A modern ERP system enhances manufacturers' ability to accurately schedule production, fully utilize capacity, reduce inventory, and meet promised shipping dates. ERP can also include application modules for the finance and human resources aspects of a business. Typically, an ERP system uses or is integrated with a relational database management system (Microsoft SQL Server, ORACLE, etc.) The deployment of an ERP system can involve considerable business process analysis, employee retraining, and new work procedures.