Enterprise Resource Planning (ERP) Overview
Enterprise Resource Planning, or ERP for short, is a comprehensive software platform that helps streamline the fundamental processes of a business, enabling it to operate more efficiently. For more information on this topic, you can read our article on What is SAP?
The ERP system can handle customer orders, manage financial records, update inventory, and forecast labor needs. Additionally, it collects, stores, and analyzes data from internal functions such as marketing, production, accounting, facility management, research, and development.
What Does an ERP System Do?
ERP systems include interconnected or integrated modules. The system centers around a shared database accessible to all departments. This database contains information such as customers, suppliers, products, orders, shipments, and payments.
Key Advantages
While ERP systems can be complex, their greatest advantage is enabling businesses to achieve high efficiency by consolidating all aspects into a single system.
For instance, consider the process of selling a product. A customer purchases an item from a store. The ERP system retrieves customer information, checks inventory status, and prepares for shipment. This process automates without the need to re-enter customer details, manage inventory, or oversee production, enhancing customer satisfaction and allowing businesses to manage processes more effectively.