The ERP (Enterprise Resource Planning) is to integrate all the departments and also the functions across the business/organisation in a single computer system. The ERP serves all the departments particular needs. Building a single software program that is a tall order, which serves the needs of the people not only in finance but in human resources and also in warehouse.
Each of the department in that organisation have its own system that optimized for the particular ways to the department does its work. The ERP combines all the systems at one place into a single integrated software program which runs through a single database so then the different departments can share and communicate with each other more easily than previous.
If the company installs the software correctly then this integrated approach will have tremendous payback. In finance, HR, manufacturing and warehouse it vanishes the old standalone computer systems and replaces them with single unified software program which divided into software modules that roughly approximate the old standalone systems.
Except the HR the finance, manufacturing and warehouse still get their own software, except now the software it is linked together so that someone in finance can look into the warehouse software to see whether any order has been shipped. Most of the vendors ERP software is flexible and enough that you can install some modules without buying the whole package. Many companies just install the HR modules and ERP finance and leave the rest of the functions for the next/another day.
In present days ERP has become important and a survey of nearly 400 IT executives found installed ERP system and out of them more than 85 percent agreed that the ERP system is essential and core for their businesses, which may could not live without them. And when asked that for next 5 years is their company would be able to live without the ERP? Than more than 80 percent of the people disagreed.
So in this competitive business environment for truly moving business an organisation must in its use of technology and systems as they leads to cost savings and for effective improvement for all businesses and organisations of small, medium and large ERP is a great way to scale and optimize the departments and also the processes. The ERP is present in all the businesses and organisations from retailers, manufacturers, and all the service providers of all the sizes.
It is a great way to organize all the departments and also the job roles into a single computer system, it is verified and information easily available. It becomes significantly necessity as the business grows. So the use an organized system allows your departments and all the functions to coordinate in real time is a critical backbone of any computer. So the processes starting from the sales, to order, to invoice, to receipt of all the payment all are often streamline with the use of such system. It decrease potential for human error and increase efficiency by providing accurate and timely information for all the benefits having ERP system in place