What is ERP?
ERP stands for Enterprise Resource Planning. It refers to the process of using software to manage and streamline all of the different aspects of a business, including inventory management, financials, human resources, and customer relationship management. The goal of ERP is to provide a single, integrated view of a company's operations and to automate many of the tasks involved in running a business.
ERPs consist of “modules” that each have a distinct business focus. While there can be many integrated modules in a complete ERP system, which vary depending on the specific needs and operations of the organization, but some of the most critical include:
Financial Management: This module manages the organization's financial transactions, including general ledger, accounts payable, accounts receivable, budgeting, and forecasting.
Human Resources or Human Capital Management: This module manages employee information, payroll, benefits, attendance, and other related tasks.
Customer Relationship Management (CRM): This module manages the organization's interactions with customers, including sales, marketing, customer service, and support.
Project Management: This module manages the organization's projects, including task management, resource allocation, budgeting, and tracking.
Supply Chain Management: This module manages the organization's supply chain, including inventory, procurement, order management, and logistics.
Production Planning: This module manages the organization's manufacturing processes, including production planning, scheduling, quality control, and maintenance.
By incorporating these modules into an ERP system, organizations can integrate their key business functions, streamline their operations, and improve their efficiency and decision-making capabilities.