What is Enterprise Resource Planning (ERP)?
ERP stands for Enterprise Resource Planning, which is software designed to ease an organization’s day-to-day functions, from logistics to management. It helps in maintaining a balance with the key functions of business, which include human resources, order management, accounting, and more. This software acts as a centralized system to streamline all the processes and information flow within an entire organization.
Following are some key features of ERP:
- This software is used to integrate all the services that are needed to run the company.
- These applications are web-based and can be accessed through every interface.
- ERP software is responsible for monitoring the growth of the organization.
- These applications are used to manage the resources within an organization.
Benefits of Enterprise Resource Planning (ERP)
Following are some benefits of ERP system:
- Information Integration: The most important benefit is the promotion of integration. It is because it has the ability to update data between related business functions and components. Also, the people involved in project are connect with each other that increases the productivity.
- Reduction of Lead Time : The time between placing an order and delivering the product is lead time . Organization must implement an effective inventory management system to reduce lead time, that system is integrated with the purchasing, production planning, and manufacturing divisions.
- On-time Shipment: ERP systems are designed to help your company reduce data transfer time, reduce errors, and increase design productivity. By using the steps of ECO, i.e., engineering change orders, the ERP system automatically implements changes in the production database. Therefore, the ERP System make sure that orders will deliver to user on time.
- Reduction in Cycle Time: It is the time between the placement of an order and the delivery of the product. There are two types of situations: make-to-order and make-to-stock. Both situations can save cycle time, but make-to-order saves more time because this ERP system integrates with CAD/CAM systems.
- Better Customer Satisfaction: The ERP system is capable of producing goods in a flexible way with consideration of time and cost management. It means you will get individual attention and get services without spending more money or waiting for a long period of time.
- Increased Flexibility: Product flexibility is the ability of the operation to efficiently produce highly customized and unique products. ERP systems not only improve the flexibility of manufacturing operations, but they also improve the flexibility of organizations.
Differences between ERP and CRM
Every tech business or industry requires a system to expedite the flow of information and management of the overall process with its employees and customers. The view was to design a software solution that supports customer support with the organization’s offerings.