Enterprise resource planning (ERP) is business process management software that allows an organization to use a system of integrated applications to manage the business and automate many back office functions related to technology, services and human resources. ERP software integrates all facets of an operation — including product planning, development, manufacturing, sales and marketing — in a single database, application and user interface.
ERP software is considered to be a type of enterprise application, that is software designed to be used by larger businesses and often requires dedicated teams to customize and analyze the data and to handle upgrades and deployment.
In contrast, Small business ERP applications are lightweight business management software solutions, often customized for a specific business industry or vertical.
ERP software typically consists of multiple enterprise software modules that are individually purchased, based on what best meets the specific needs and technical capabilities of the organization. Each ERP module is focused on one area of business processes, such as product development or marketing.
Some of the most common ERP modules include those for product planning, material purchasing, inventory control, distribution, accounting, marketing, finance and HR.
A business will typically use a combination of different modules to manage back-office activities and tasks including the following:
Distribution process management, supply chain management, services knowledge base, configure, prices, improve accuracy of financial data, facilitate better project planning, automate employee life-cycle, standardize critical business procedures, reduce redundant tasks, assess business needs, accounting and financial applications, lower purchasing costs, manage human resources and payroll.
As the ERP methodology has become more popular, software applications have emerged to help business managers implement ERP in to other business activities and may incorporate modules for CRM and business intelligence, presenting it as a single unified package.
The basic goal of using an enterprise resource planning system is to provide one central repository for all information that is shared by all the various ERP facets to improve the flow of data across the organization.
ERP Software automates and integrates core business processes such as taking customer orders, scheduling operations, and keeping inventory records and financial data. ERP software can drive huge improvements in the effectiveness of any organisation, including but not limited to:
- Manufacturing Management
- Distribution Management
- Financial Management
- Reporting & Analysis
What Is ERP and what are the Benefits for Your Business?
Utilise the latest in software innovations to streamline how your business performs its core processes.
ERP is an industry acronym for Enterprise Resource Planning. Broadly speaking, it refers to automation and integration of a company’s core business to help them focus on effectiveness & simplified success.
MAGATH defines the meaning of ERP
As one of the longest standing ERP vendors, we often get asked by prospects (and potential employees) to define what it is. The Information Technology industry is renowned for its adoption of acronyms, which are often widely used, but not fully understood. The term ‘ERP’ itself is not self-explanatory and refers to the business software that has been designed to record and manage your enterprise data.
An ERP system automates and integrates core business processes such as taking customer orders, scheduling operations, and keeping inventory records and financial data. This can drive huge improvements in the effectiveness of any organization by:
- assisting you in defining your business processes and ensuring they are complied with throughout the supply chain;
- protecting your critical business data through well-defined roles and security access
- enabling you to plan your work load based on existing orders and forecasts
- providing you with the tools to give a high level of service to your customers
- translating your data into decision making information
Benefits of ERP for your Business
- Integration across all business processes – To realize the full benefits of an ERP system it should be fully integrated into all aspects of your business from the customer facing front end, through planning and scheduling, to the production and distribution of the products you make.
- Automation enhances productivity – By automating aspects of business processes, ERP makes them more efficient, less prone to error, and faster. It also frees up people from mundane tasks such as balancing data.
- Increase overall performance – The integration of disparate business processes benefits by ensuring coherence and avoids duplication, discontinuity, and people working at cross purposes, in different parts of the organization. The cumulative positive effect when business processes integrate well is overall superior performance by the organization.
- Quality Reports and Performance Analysis – Analysis will enable you to produce financial and boardroom quality reports, as well as to conduct analysis on the performance of your organization.
- Integrates across the entire supply chain – A best of breed system should extend beyond your organization and integrate with both your supplier and customer systems to ensure full visibility and efficiency across your supply chain.