Enterprise resource planning (ERP) is the integrated management of main business processes, often in real-time and mediated by software and technology.
ERP is usually referred to as a category of business management software — typically a suite of integrated applications—that an organization can use to collect, store, manage and interpret data from these many business activities.
ERP provides an integrated and continuously updated view of core business processes using common databases maintained by a database management system. ERP systems track business resources—cash, raw materials, production capacity—and the status of business commitments: orders, purchase orders, and payroll. The applications that make up the system share data across various departments (manufacturing, purchasing, sales, accounting, etc.) that provide the data. ERP facilitates information flow between all business functions and manages connections to outside stakeholders.
Uses of ERP Development
The purpose of ERP software is to increase efficiency, streamline processes and promote a culture of collaboration in the organization.
- Increases Efficiency
- Promotes Collaborations
- Increases Data Security
- It Helps You Comply with Industry
- It Allows you to make Accurate Forecasts
- It Increases operational Flexibility
- It Reduces Operational Costs
Types of ERP DEVELOPMENT
- Generalist ERP
- Open-Source ERP
- Vertical ERP
- Small Business ERP
The most fundamental advantage of ERP is that the integration of a myriad of business processes saves time and expense. Sales forecasting, which allows inventory optimization.
- A chronological history of every transaction through relevant data compilation in every area of operation.
- Order tracking, from acceptance through fulfillment
- Revenue tracking, from invoice through cash receipt
- Matching purchase orders (what was ordered), inventory receipts (what arrived), and costing (what the vendor invoiced)
- Eliminates the need to synchronize changes between multiple systems—consolidation of finance, marketing, sales, human resource, and manufacturing applications
- Brings legitimacy and transparency to each bit of statistical data
- Facilitates standard product naming/coding
- Provides a comprehensive enterprise view (no “islands of information”), making real-time information available to management anywhere, anytime to make proper decisions
- Protects sensitive data by consolidating multiple security systems into a single structure