ERP is an industry acronym for Enterprise Resource Planning. Broadly speaking, ERP refers to automation and integration of a company's core business to help them focus on effectiveness & simplified success.
The Information Technology industry is renowned for its adoption of acronyms, which are often widely used, but not fully understood. The term 'ERP' itself is not self-explanatory and refers to the business software that has been designed to record and manage your enterprise data.
An ERP System automates and integrates core business processes such as taking customer orders, scheduling operations, and keeping inventory records and financial data. ERP systems can drive huge improvements in the effectiveness of any organization by:
Integration across all business processes – To realize the full benefits of an ERP system it should be fully integrated into all aspects of your business from the customer facing front end, through planning and scheduling, to the production and distribution of the products you make.
Automation enhances productivity – By automating aspects of business processes, ERP makes them more efficient, less prone to error, and faster. It also frees up people from mundane tasks such as balancing data.
Increase overall performance – By integrating disparate business processes, ERP ensures coherence and avoids duplication, discontinuity, and people working at cross purposes, in different parts of the organization. The cumulative positive effect when business processes integrate well is overall superior performance by the organization.
Quality Reports and Performance Analysis – Analysis on ERP will enable you to produce financial and boardroom quality reports, as well as to conduct analysis on the performance of your organization.
Integrates across the entire supply chain – A best of breed ERP system should extend beyond your organization and integrate with both your supplier and customer systems to ensure full visibility and efficiency across your supply chain.