ERP Software

Business ERP Software

The best way to grasp the concept of ERP, or Enterprise Resource Planning, is to think of its goal.  The end goal of Business ERP Software is to coordinate and "make interactive" all the various activities of all the interrelated departments in a business; to have one single software solution to combine and integrate the operations of all the various departments. These departments can be anything from purchasing, inventory, production, sales, delivery and shipping, all the way to billing and payroll.

Business ERP Software first came about as a natural progression from the software that had been developed for Manufacturing Resource Planning and then for MRP II. The difference was in its representation of a new advance, reaching much further than just the manufacturing industry. Business ERP Software allowed for the integration of the various departments within a company no matter what their product. Without it, it can take days for one department to get data to and from another. This type of segregation of information tends to equal inefficiency, wasted time, and loss of profits. The move forward taken by ERP software systems then was considered to be its ability to be cross-functional and enterprise wide. All functional departments involved in operations or production were now integrated in a central system. This included not only manufacturing, warehousing, and shipping, but also accounting, human resources, marketing, and strategic management. And because ERP was adaptable by other industries besides manufacturing, it was also able to assist a wide range of businesses in the service sector like hospitals, legal firms, and government agencies.

Because Enterprise Resource Planning can do so much in the areas of accounting, sales, order entry, shipping, invoicing, inventory management, manufacturing scheduling, and even shop floor control, there is no doubt Enterprise Resource Planning software is the answer to many of the problems plaguing businesses. The software systems handle back office functions –those that are not seen by the public- so, in short, the integrated systems resulting from Business ERP benefit a business’ marketing, accounting, and management. Companies use it to keep track of their business.

The end benefit of Business Enterprise Resource Planning Software is that companies that use it run smoother, have consistent data across all departments, make fewer errors, and become more cost-efficient and effective. In a nutshell, they save money and they make money; and, in today's economy, that's a very good thing.

Written by :

Amy Cruz