What is The Full Form of ERP ?

Aug 19, 2022, 16:45 IST

About the full form of ERP?

Enterprise Resource Planning is the full form of ERP. It is business management software that consists of several business organizations to increase their efficiency and quality. It's a powerful business tool. It is used to collect data from many business activities such as product planning, costs, production or service distribution, sales and marketing, inventory control, shipping, and payment, etc.

The main feature of the ERP system is a centralized database that includes various functions that use multiple domains. For example, sales and accounting can depend on the same data. Each ERP software module has its business function and is used to improve the efficiency and performance of the organization. The main ERP providers are Oracle, SAP, IFC, Microsoft, Infor, QAD, Lawson, Epicor, SAGE, etc.

About ERP

Various Modules of ERP

ERP software is also useful for large companies and includes several ERP modules

1.      Financial accounting

2.      Inventory

3.      Project management

4.      Purchase

5.      Human resources

6.      Customer relationship management

7.      Supply chain management

Benefits of ERP

1.      It makes it easier for workers to do their jobs more efficiently.

2.      It reduces risks and improves financial compliance.

3.      Core business processes are automated.

4.      It improves customer satisfaction by providing a single point of contact for billing and relationship tracking.

5.      It provides a global, real-time summary of the system to help companies update.

Primary goals of ERP

The goal of any ERP project is to track supply chain activities from inventory purchase through processing to final shipping.

1. Efficiency

The real-time flow of information in the ERP system facilitates analysis, data, and reporting. It also improves decision-making. It also helps reduce the need to maintain multiple databases.

2. Cost reduction

Reducing costs is a crucial reason when small and large companies invest a lot of time and resources in implementing ERP systems. It will reduce waste and increase productivity. It also reduces the overall production cost.

3. Quality

Quality improvement is the most important goal of ERP. Software technology helps management compare its quality performance with other manufacturing companies in the same industry.

4. Decentralization

Enterprise resource planning systems can decentralize decision-making processes at all levels. It enables users to access the same data in real-time, such as the production status and financial reports.

Implementation

Time and cost are important factors to consider before buying or implementing an ERP system. The implementation can take several months to a few years. The cost is also fixed and varies based on your needs and the features provided by the seller. Therefore, it is recommended that you fully analyze the vendor's ERP package modules, functions, and support infrastructure before implementing the ERP.