The ERP Process Provides Full Integration

Enterprise Resource Planning or ERP primarily handles the three most important functional areas of an organization - resource planning, management and operational control. ERP integrates all the facets of an enterprise - manufacturing, logistics, inventory, marketing, sales, distribution, customer relationship management and human resources and brings them all together under one single cross-functional, accessible platform. Essentially a back-office system, ERP does not involve customers, suppliers and public directly. It uses software to facilitate business operations in the most cost-effective way. The ERP process contains various modules and each module has its own functional area: production planning for optimum use of production capacity, purchase for acquiring raw materials for use in manufacturing, inventory control, sales which includes order booking, shipping and invoicing, marketing which involves direct advertising and support, finance and human resource management.

ERP software which is at the heart of the ERP system enables a company to manage and control all its functions in one integrated system. it reduces costs and increases business efficiency. It not only helps in bettering daily operational controls but also helps in long and short term strategic planning. Imparting adequate training and enhancing the skill level of employees ensure the successful implementation of the ERP process.

There are many ERP vendors who provide not only the ERP software but also help you with its implementation. The selection of the right ERP process is critical to any organization who wants to make a success of the big investment. The first criteria would be to check the design architecture of the ERP package which you are going to buy. Most ERP packages are built according to the demand of the majority of the target group. The functionalities or the scope of the software is a result of that architectural design. The crux of the matter is thus to make the ERP process work for your organization, you might have to align or integrate your own internal processes. The architectural approach of a ERP system will differ from one vendor to the other but you have to make sure that it matches with your now needs and existing processes.

Thus selecting an ERP process is all about selecting an approach that befits your organizational needs best.

One of the main reasons why ERP processes fail in an organization is the resistance which it faces on implementation. The old, tried and tested methodologies of doing work may well be defunct, but it works. Thus many organizations fail to capture the true 'benefits' of the ERP process as they resist change. The other reason is, because ERP processes disseminate information and makes data easily accessible, it can put the delicate equation of power and control in a state of imbalance.This makes many 'control freaks' in an organization feel insecure, as they lose control over information.

The most important thing to understand with regard to ERP process is that ERP is not a technical and financial exercise. It is a business-led decision, which is aimed at increasing business efficiency and streamline business processes.