ERP Software

Enterprise resource planning software, or ERP, is designed to unite all functions of a business onto a single computer system that will then merge data and serve all the  particular needs of every department. To create software that serves the needs of employees in finance as well as it does the people in sales and those in human resources is not simple, but ERP software can do it. And, time and again, it has been proven that this integrated approach to running a company is capable of making an enormous impact on a business’ bottom line.

ERP software replaced the legacy systems that used to operate independently in finance, HR, manufacturing, and the warehouse. Now the data from these departments is handled by software that is linked together. In this fashion, all information meshes together to make a whole: finance can look at shipping, and human resources can look at sales, etc.

The way ERP software is marketed, it is not necessary for a business to buy all the modules that could make up a whole. Most vendors sell pieces of a specific system as well as entire systems. This way, businesses can buy modules to serve the functions of today and leave the purchase of other modules for the future. This more piecemeal approach seems to work well as long as businesses continue to purchase new modules that can be integrated with those already installed.

ERP software packages are comprehensive, yet specific to (manufacturing) companies that market concrete products. Vendors are now offering software applications that target industries like: retail, media, high-tech, public sector, higher education, legal firms, non-profits, and banking. Still, because their production is measured in flow instead of in countable units, the oil, chemical, and utility companies are not being well served at this time.

ERP is frequently referred to as software for back-office functions. This means it handles processes considered behind the scenes, and it is there where it makes its biggest impression. ERP software makes the way in which a company accepts an order from a customer, processes it, and turns it into an invoice, and then revenue –a better way. When a customer order is entered into the computer, information instantly becomes accessible illustrating the customer’s credit report, buying history, availability of the product, and shipping schedule.

Employees in all these departments are able to see the new information –and they are all looking at the same information- plus they are able to update the information. When ERP software has been properly implemented and employees have all been properly trained how to use it, then the steps that make up processing the order quickly follow one another without missed steps, misinformation, and errors.

Written by :

Amy Cruz