What is Enterprise Resource Planning
Definition of ERP:-
ERP is stands for Enterprise Resource Planning system. It is extensive information systrms are required that can automate and integrate the business information and processes. Today, ERP systems are becoming more and more powerful as new frontiers for ERP are continuously being explored.
J.V. Hillegersberg define ERP systems "Configurable information system packages that integrate information and information-based processes within and across functional areas in an organization."
An enterprise-wide information system integrates all aspects of a business to support all business strategies for better decision making and faster response time.ERP systems provide support for multiple currencies and languages.
Characteristics Of ERP Systems:-
- These system are provide easy and secure access to information in real-time environment.
- ERP systems provide support for multiple currencies and languages.
- These systems are large scale, end-to-end business processing systems.
- ERP systems are function-rich and integrate manority of a business's processes and operations.
- ERP provides a large number of benifits to the company. It is help companies compete better.
- According to Gary Forger,"ERP acts as a planning backbone for a company's business processes."
- Integrated Management : the ERP systems manage all the business processes with a single ,integrated and shared enterprise wide information system.
- ERP systems facilitate the synchronization of activites within the department such as finance, manufacturing,human resource etc.
- Improve corporate image ERP system the company in restructures is its process to the so called best practice so that all activities across the Enterprises are smoothly coordinated. This improve the corporate image.
- provides vendor management ERP system integrated with SCM (supply chain management) and EDI (electronic data interchange) monitor vendor activities and manage their supplier efficiently.
- provide on time delivery for product to customers. with ERP companies are able to deliver highly customized products with the lead time of standard off the shelf products.
- sometime quality related cost include cost of scraps, rework ,repair and service costs, costs of inspectors,evaluation costs of new product and training.
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