The Contribution of Enterprise Systems

Topics: Enterprise resource planning, Supply chain management, Management Pages: 1 (312 words) Published: October 10, 2011
The Contribution of Enterprise Systems

Enterprise systems are also known as enterprise resource planning (ERP) systems. The system is made up of integrated software modules and a common central data base. The key word here is resource. The database collects resource data from the many departments and divisions in a business organization so the organization can have all the data from all of it’s inside sources available instantly. The database collects from suppliers, manufactures, human resources, marketing and any other departments that have to do with getting a product from it’s beginnings to the customer. All of these organization functions and their internal functions are supported by the enterprise system. Production planning, production planning, product cost accounting, accounts payable, fixed assets, purchasing, inventory control, delivery routing, and everything else that has to do with a product from its’ beginning conception to it’ arrival in the hands of the customer. Even after the customer purchase the enterprise system will support functions including customer service, and customer feedback. Operations in most organizations today are more far reaching than local; reaching global capacity. Using and implementing enterprise systems helps organizations to cut back on overstock, so that costs are brought under control from suppliers to retail. It streamlines the entire process of business giving every faucet of business instant knowledge of what other parts of the system needs and is doing. Some of the challenges of enterprise applications are expense. The software can be very expensive to both purchase and put to work. It takes years for large companies to put an

enterprise system into action. They can change the way a business operates and does business. They can cause many businesses to experience problems in the beginning of their implementations. Shipments can be late, inventory can be overstocked. It takes time for the enterprise system to...
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