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Integrated Enterprise Resource Planning (ERP) Systems

  • It is an overall business management system that caters need of all the people connected with the organization. Every organization uses variety of resources in achieving its organization goals. ERP is an enterprise-wide information system designed to coordinate all the resources, information, and activities needed to complete business processes such as order fulfillment or billing.
  • Financial & Accounting Systems are an important and integral part of ERP systems. ERP system includes so many other functions also. An ERP system supports most of the business system that maintains in a single database the data needed for a variety of business functions such as Manufacturing, Supply Chain Management, Financials, Projects, Human Resources and Customer Relationship Management.

  Benefits of an ERP System

  • Information integration: The data entered at one place automatically updates data in all functions. For example - one needs to only update the status of an order at one place in the order-processing system; and all the other components will automatically get updated.
  • On-time Shipment: Since the different functions involved in the timely delivery of the finished goods are integrated and automated; the chances of errors are minimal and the production efficiency is high.

Thus, ERP system ensures on-time delivery of goods to the customers.

  • Better Customer Satisfaction: Since all the details of the product and the customer are available, the company will be able to better support the customer.
  • Reduction of lead-time: The elapsed time between placing an order and receiving it is known as the Lead-time. The ERP Systems by virtue of their integrated nature reduce the lead times and make it possible for the organizations to have raw material at the time they are required.
  • Reduction in Cycle Time: Cycle time is the time between placement of the order and delivery of the product. In an ERP System; all the data, updated to the minute, without human intervention. This efficiency of the ERP systems helps in reducing the cycle time.
  • Improved Supplier Performance: ERP helps the organization in managing supplier relations, monitoring vendor activities and managing supplier quality.
  • Improved Resource utilization: The efficient functioning of the different modules in the ERP system drastically improves the capacity and resource utilization.
  • Use of Latest Technology: ERP packages are adapted to utilize the latest developments in Information Technology such as open systems, client/server technology, Cloud Computing, Mobile computing etc.



Generally, an ideal ERP system is that system where a single database is utilized and contains all data for various software modules. These software modules can include the following:

  • Manufacturing: functions include workflow management, quality control, bills of material, manufacturing process, etc.
  • Financials: Accounts payable, accounts receivable, fixed assets, general ledger and cash management, etc.
  • Human Resources: Benefits, training, payroll, time and attendance, etc.
  • Supply Chain Management: Inventory, supply chain planning, supplier scheduling, order entry, purchasing, etc.
  • Projects: Costing, billing, activity management, time and expense, etc.
  • Customer Relationship Management (CRM): is to improve services provided directly to customers and to use the information in the system for targeted marketing.
  • Data Warehouse: Data warehouses are designed to facilitate reporting and analysis. The process of transforming data into information and making it available to the user in a timely manner is known as data warehousing.

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