| Enterprise
Resource Planning |
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It is
not a question of how well each
process works, the question
is how well they all work together
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Enterprise Resource Planning
refers to the broad set of activities
supported by multi-module application
software that helps an entrepreneur
manage and co ordinate the important
parts of his/her business. It
attempts to integrate all departments
and functions across a company
onto a single computer system
that can serve all those different
departments' particular needs.
An ERP package includes applications
for Production Planning, Finance
& Human Resources Management,
Customer service and many more
which adds to the coordinated
working of the organization.
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ERP, when installed will act
as a bridge to link the functioning
of different departments in
the organization. The independent
computer systems in finance,
HR, manufacturing and the warehouse
will be replaced with a single
unified software program. The
departments will still have
their own software, except now
the software is linked together
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| Why
ERP? |
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Traditionally, different
departments in an organization
worked independently.
All the departments did
their job well. But if,
anything went wrong outside
the department's walls,
nobody was there to take
responsibility of the
same. ERP adds professional
values in the employees
and trains them to work
as an unit. |
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Different departments
may be playing their role
in the financial status
of the organization. Some
may be contributing, some
consuming, and some departments
doing both. Every department
will produce their own
versions of financial
statements. ERP integrates
the revenue and helps
to create a single version
of the financial statement
that cannot be questioned
because everyone is using
the same system |
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By having an ERP system
companies can keep track
of orders more easily,
and coordinate all the
processes happening in
different locations. |
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ERP helps in augmenting
the production. Using
a single, integrated computer
system can save time,
increase productivity
and reduce number of employees.
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ERP helps to reduce the
cost of inventory as all
the processes are integrated.
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Helps manage HR files
more effectively, since
all the information will
be available in a single
system. This will be especially
beneficial for organizations
with multiple business
units employing different
types of employees. |
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