Introduction to ERP system.
Information is crucial in the day to day operations and long-term success of large corporations down to small businesses with barely a handful of employees. Effectively managing and accessing needed information in a timely manner is a key success factor in business. It is often recommended that businesses explore an enterprise resource planning (ERP) system. But what is an ERP system and can they really make a difference in accessing your businesses information in a quick and easy manner?
When a person asks ‘what is an ERP system’ a relatively simple answer can actually be given. An ERP system is a software program that pulls together a business’s information with the goal of facilitating the flow of this information easily. There are several different ERP software systems and a central database is often used for storing all of the data.
With a single, powerful software program, enterprise resource planning systems integrate all departments (HR, accounting, sales, manufacturing, etc.) and functions of an organization onto a single computer system. The software serves each department’s needs and provides a host of benefits to the company. From improving efficiency and reducing operational costs to allowing management to make smarter business decisions, an ERP system breaks down the barriers between departments for easy sharing and communication.
So is there a benefit for companies utilizing ERP systems? For most companies the answer is yes.
When an order comes in at a typical company, it sets off a series of processes throughout the different departments of the company. Often times each department has a different computer system optimized for that department. Often times these systems don’t or can’t communicate with each other. Therefore, the customer’s information is keyed in multiple times as it travels from department to department. These multiple entries increase the possibility for error and slow down...