ERP Software Packages
Enterprise resource planning (ERP) is the industry term used to describe a wide collection of activities supported by multi-module application software that helps a company manage every one of its business functions. These individual parts can include product planning, parts purchasing, maintaining inventories, sales, customer service, tracking orders, delivery, shipping, finance, and human resources. The complete information systems methodology has become synonymous with packages of business application software.
Today ERP software packages do the work of integrating, allowing employees to spend more of their day improving the business rather than trying to figure out how the business is doing, and where the orders are. All through the 1980s, companies wanted the integration of distribution information with manufacturing data, and MRP systems were extended to MRP-II (Manufacturing Resources Planning). In the 1990s, companies experienced unparalleled growth by expanding into new markets. To manage this growth, owners and executives desired holistic reporting of their business's health. ERP solutions were developed to create an information system that integrated information across the entire enterprise. Before ERP software packages, company managers would have had to get data from the person in charge of each business department, and then integrate the information provided.
There is no doubt that ERP software packages are enormously expensive. Still, the expected Return on Investment of a system that represents a good fit should more than make up for the initial expense. The key here is for a business to find the ERP Software Package that one system that is going to represent the best fit.
A company looking at ERP Software Packages should understand that the preparation for ERP software selection is equal to any plan for key projects embarked on. A company should be prepared to commit a considerable amount of time and resources. Only a strong commitment to find the best product can put together the research and answers needed before an informed ERP software package selection decision can be made. An important step if finding the best ERP Software Package is for a business to evaluate its needs carefully and create a list of business issues the ERP system is expected to help them solve. A corresponding step is to designate a passionate leader for the project and select a dedicated, cross-functional project team. A company should also be prepared to handle the implementation in focused stages beginning with the most basic systems and expanding to the other functional areas.