Simply put, enterprise resource planning and management or ERP management solutions allow businesses to track, allocate and design proper resource location, utilization and assignment to heighten productivity, efficiency and profitability while enhancing a developing trust between the business and its customers. ERP software enables not just intra-departmental communication but also inter-departmental collaboration and commitment, ensuring everyone involved in a process, whether it’s finance, marketing, manufacturing or distributing, is all “on the same page”.
ERP programs are recognized by both large and small enterprises as extremely valuable tools. From inventory control to research and development progress, ERP was developed from materials resource planning but reaches far beyond that minimal boundary.
Two primary focuses in ERP programming include distribution and manufacturing operations. The distribution software enables tight inventory control, automatic ordering and alerts that notify when sufficient quantities of a desired product are available for shipping to a customer. The distribution software focuses on minimizing inventory storage costs while maximizing efficiency. Many distribution software systems allow both RF and barcode-enabled warehouse management operations that ensure smooth work flow and minimized hands-on product handling, reducing both overhead costs and delay times.
The common manufacturing ERP programs allow customized tracking, such as make-to-stock, make-to-order, assemble-to-order or configure-to-order needs across an enterprise or an industry. While few ERP packages present all these options, tailored, sub-focus packages often suit businesses much better than “one size fits all”. Ensure you obtain the proper focus of the right configuration before you purchase the software.
Without ERP it would be necessary to have multiple software packages dealing with these various processes. These different packages may not work well together and inconsistencies may emerge. By integrating these processes through ERP, such inconsistencies are avoided.
Having a fragmented set of processes can cost time and money. Integrating them within ERP software can therefore constitute a saving of both. With ERP there is no need to spend time converting between different systems to compare, for example, sales data with data from customer service. Instead, it is all in one place. ERP leads to less paperwork and documentation. There is no need to enter data in multiple locations or on multiple systems. One of the advantages of ERP is that data entered anywhere in the organization will be immediately available throughout the organization. With all of the relevant information in one place, decisions can be made more quickly and with greater confidence. Decisions made with complete information are obviously sounder than those made with incomplete information.