Erp Implementation

Erp Definition

Erp Definition And Meaning

Erp Definition

The integration of a companies information systems to bind business units for centralized reporting and decision making. This can include inventory, supply chain, financial, logistics and human resource management. Enterprise resource planning aims to improve business transparency and to bring a company closer to its suppliers and customers.

ERP system Definition:

Erp Definition

Typically, erp occurs through an integrated suite of reporting tools which is facilitated by a relational database. Each company has unique business needs, structures and architecture in place. No one solution necessarily caters to the needs of every organization. The implementation of erp requires evaluation, planning and the implementation of a solution that is consistent with an organizations processes, goals and objectives.

Third party ERP tools may be able to connect to a companies exiting software but requires bridging and integration to tie platforms and different data formats together. Planning a full scale ERP implementation can, therefore, be a significant undertaking that involves data migration across multiple platforms and languages. When sufficient in house expertise does not exist, organizations can outsource to ERP companies who can provide specialized solutions in accordance with business requirements.

Inventory management: ERP management takes on greater significance when a company starts to reap the benefits of real time component management. By interfacing with multiple suppliers, real time on demand analysis can facilitate 'on the fly' ordering to reduce a companies inventory levels. This allows companies to redeploy capital elsewhere.

Financial Reporting: Greater business unit transparency allows senior business managers to forecast operational cash flows and to allocate surplus capital to growth areas or to activities that can maximize the return on investment. In the past, this level of real time data was not available to make decisions in such a timely manner.

Logistics: Companies with dispersed geographic operations can now talk through software applications that can integrate over the internet. This permits companies to stay on top of information and resource flows, monitor progress and adapt to changing business needs and processes.

Human Resources: Decisions relating to human capital can now being more accurately forecasted and reported on. By integrating with financial and payroll accounting, companies can determine staffing levels, reduce costs and plan for future growth requirements.

The ERP system definition ultimately depends on an organizations structure and integration. In todays fast pace business environment, the smart and flexible use or erp reporting tools can provide a significant competitive advantage to companies by extracting critical data to make more informed decisions.

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