ERP Proposal

Topics: Enterprise resource planning, Supply chain management, Management Pages: 11 (2965 words) Published: April 9, 2014


Table of Contents

What is ERP?
Enterprise resource planning (ERP) systems integrate internal and external management information across an entire organization, embracing finance/accounting, manufacturing, sales and service, customer relationship management, etc. ERP systems automate this activity with an integrated software application. The purpose of ERP is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders. Characteristics

ERP (Enterprise Resource Planning) systems typically include the following characteristics: An integrated system that operates in real time (or next to real time), without relying on periodic updates. A common database, which supports all applications.

A consistent look and feel throughout each module.
Functional Areas
The following are common functional areas covered in an ERP System. In many ERP Systems these are called and grouped together as ERP Modules: Financial Management
General Ledger, Fixed Asset, Payables, Receivables, Cash Management, Financial Consolidation Management Accounting
Budgeting, Costing, Cost Management, Activity Based Costing Human Resources
Recruiting, Training, Payroll, Benefits, Diversity Management, Retirement, Separation Manufacturing
Engineering, Bill of Materials, Work Orders, Scheduling, Capacity, Workflow Management, Quality Control, Manufacturing Process, Manufacturing Projects, Manufacturing Flow, Product Life Cycle Management Supply Chain Management

Supply Chain Planning, Supplier Scheduling, Order to Cash, Purchasing, Inventory, Product Configuration, Claim Processing Project Management
Project Planning, Resource Planning, Project Costing, Work Break Down Structure, Billing, Time and Expense, Performance Units, Activity Management Customer Relationship Management
Sales and Marketing, Commissions, Service, Customer Contact, Call Center Support Data Services 
Various "self–service" interfaces for customers, suppliers and/or employees Access Control
Management of user privileges for various processes

Before ERP systems appeared, in most organizations each department had their own operating system, data and database. The problem was that many of those systems would not be able to communicate with each other, so for example, the financial of a company would have been on a separate computer system than the Human Resources information, thus complicating the processing of certain functions. To maintain a competitive edge, you need a clear view of all aspects of your business. You must streamline processes and find better ways to access the information that will result in the best business decisions. If you can effectively track and then access all customer related information, for example, you can service your customers more personally and intelligently at every point of contact – locking in their loyalty and ensuring repeat business. And if you can accurately monitor and manage revenue and expenses, you are positioned to optimize cash and liquidity, which increases your financial strength and gives you the flexibility to respond quickly when business opportunities arise. When a company sets up an ERP system, all aspects of the organization can work in harmony. As a result the organization enjoys increased productivity and may use less types of software. Advantages

The fundamental advantage of ERP is that integrating the myriad processes by which businesses operate saves time and expense. Decisions can be made more quickly and with fewer errors. Data becomes visible across the organization. Tasks that benefit from this integration include. Sales forecasting, which allows inventory optimization

Chronological history of every transaction through relevant data compilation in every area of operation. Order tracking,...
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