ERP (Enterprise resource planning)

ERP (Enterprise resource planning) can be defined as a ˇ§ software solution that addresses the enterprise needs taking the process view of the organization, to meet the organizational goals tightly integrating all functions of an enterpriseˇ¨ It 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 all the parts of its business. ERP facilitates integration of company-wide information systems with the potential to go across companies.

Advantages Of ERP

In the absence of an ERP system, a large manufacturer may find itself with many software applications that do not talk to each other and do not effectively interface. Tasks that need to interface with one another may involve:

* design engineering (how to best make the product)
* order tracking from acceptance through fulfillment
* the revenue cycle from invoice through cash receipt
* managing interdependencies of complex Bill of Materials (BOM)
* tracking the 3-way match between Purchase orders, Inventory receipts , and Costing
* the Accounting for all of these tasks, tracking the Revenue, Cost and Profit on a granular level.