Strategic Planning Via An ERP Application

The prime benefits of ERP application are enhanced co-ordination between different functional areas and improved business efficiency. The integration of all business processes across all departments on to a single information system is the function of ERP software. The short term benefits of ERP application includes reduced operating costs, low inventory and production costs and reduced 'help desk' maintenance costs, increased inter-departmental transparency and freer flow of communication across the organization.

The other benefit of ERP application is the facilitation of day-to-day operations. Since ERP systems maintain back-end data warehouses, it automatically ensures increased accessibility of data by more number of people. This ensures easy and current access of multitude of information required by people who take managerial decisions within the company. ERP application also helps in keeping tab on actual costs of business activities thus helping in realistic budgeting.

ERP applications support strategic planning. It helps in connecting business needs resources and expected outcome of a plan. It even measures and evaluates the process to meet the corporate goals. ERP application deals with resource planning as a major segment of strategic planning. It then integrates with Decision Support Systems.

ERP software solutions help in the ERP application through automation of all functional departments with an organization into a single computer system which can adequately cater to all needs of a particular department. ERP software application can be of various modules for each business activity - product planning, component purchase, inventory control, manufacturing, distribution, supply chain management, marketing, sales, customer relationship management and human resources planning.

ERP applications vary according to the need and size of the organization. The software solutions are designed for specific kinds of companies - small, mid-sized to large, and modules needed to manage their resources and operations effectively.

Some ERP applications are web-based from a single-source platform that offers real-time web accessibility. This software integrates chain application in a Microsoft SQL or Access environment.

ERP software solutions are found suitable for the distribution and service industries which support the front-office systems. The ERP application unifies the entire organization offering a 360 degree view across the company, its business and personnel, workflow, finance, ongoing events and customer-related activities. Since the ERP application centers all its activities on the company, the people and its customers, it helps management to take better and quicker decisions, analysis, plans and implementations across the entire organization. The application also divulges the costs, inefficiency areas and redundancies which could be hidden by the complexities of the business.