Introduction to Enterprise Resource Planning

Is your company falling behind in meeting production schedules? Are you faced with overstock or high costs? Attempting to optimize plant operations without a streamlined information system presents issues to anyone brave enough to undertake this feat. Luckily, an Enterprise Resource Planning (ERP) system alleviates these pervasive problems.

So What is an ERP System Exactly?

Imagine a vast information system that manages all the information about a company’s products, customers, suppliers, employees, production facilities and financial balances. An ERP system calibrates and controls all the resources of a manufacturing facility. An ERP system also functions as a comprehensive commercial package, designed to support and integrate organizational processes across functional boundaries.

Every department accesses and uses this system on a daily basis. Sales checks inventory levels; Production checks inventory balances of components, and Finance manages accounts payable through an ERP system. An ERP system records every transaction that takes place within the company in real time, serving as a hub of communication for the entire company.

So What are the Benefits?

Companies that implement Enterprise Resource Planning systems experience a variety of advantages depending on the industry at hand. Almost immediately, interdepartmental communication, productivity, and efficiency within the company improve drastically. Due to the seamless integration of different functional areas, your team easily traces orders from placement to payment. Salespeople can track the status of an order at any time, improving the overall customer experience.

Also, ERP helps production manage inter-dependencies of raw product components. For example, ERP software readily incorporates any changes made to the list of product materials required to assemble the final product in real time.

The benefits of Enterprise Resource Planning extend beyond the production floor as well. Since, the software catalogues all inter-departmental date, non-production-based departments like marketing and sales are then better equipped with the metrics required to run successful campaigns and plan for seasonal trends.

Employees enter new information regarding any aspect of production and the sales process as soon as it happens. These systems store all information in a shared database with ease of access and integration meaning easily accessible information from one application in a seamless manner. The majority of users find the overall experience beneficial after the initial learning curve.