Enterprise resource planning (ERP) software is one of the latest and most popular innovations of information technology in business world. It is such remarkable software that integrates and streamlines process, functions and information flows in an organization in order to reorganize organizational resources like, labor, material, machine and money. In simple words ERP system tend to integrate all process and data into a single unit to speed up success process. Key component of ERP system is the use of a database to store data for various modules of the system.
Integration of all process to a unified system will make a company to work at higher levels; it speeds up the productivity and in return leads to high profit. Another advantage of ERP is speedy flow of information which is very necessary for organizational success as we are living in the age of information. So, it is necessary for organizations to have an effective management to transfer information from one place to another and make the workers able to process the data within short time span.
In this competitive era it is not enough to transfer information quickly but organization also demands high quality information because information is considered useless if it is not of high quality. ERP system ensures high quality data and allows company to manage inventory effectively and efficiently. Popularity of ERP system lies in the fact that it reduce cost and never compromise on quality. Without ERP organizations have to spend more on completing various paper works which is not only costly but also requires plenty of time to complete a single task. Moreover more cost will be needed for different software’s that are not specifically design for each other.
Initially ERP was used in manufacturing industry but later on it becomes popular in all organization regardless of the type and size of business. Typical ERP module consists of
o Supply chain system
o Financial system
o Human resource
o customer resource management (CRM)
o Ware house management
o Purchase system
o Decision making system
o Strategic management system
ERP modules are cross functional and all functional units involved in production and operation are integrated to a single system.
Once this software is installed and all process are integrated then cost incurred on maintenance and transfer of information will be minimum. Money saved can be invested in new marketing strategies or manufacturing of new product to expand company growth and increase revenues. ERP makes the company flexible and makes them able to adopt technological changes quickly and efficiently.
ERP systems is available in different flavors and are designed for people running businesses in specific industries like education, communication, finance, HRM and many more. ERP enfolds huge benefits for organizations and provides them with business and industry solutions.
