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What is an ERP System?

By: David T.

Enterprise resource planning (ERP) is the name given to the planning of acquisition, control and movement of a company's resources. These resources can include customers, products, employees and even projects. Traditionally, resource planning and management was a time-consuming and costly part of running a company, but with the computerization and technological advancement of recent years it no longer has to be this way thanks to modern ERP systems.

An ERP system is basically a collection of software that can automate and control many, if not all, of a company's resource management tasks. This could include a warehouse management system (WMS) for example, that can monitor the stock levels of materials and products in a company's warehouses. Such a system might include a barcode scanner for adding products to the database, and a simple system for updating the counts. A warehouse management system may even be able to automatically generate orders based on the current levels of stock and produce reports detailing in a concise manner the movement of stock into and out of the warehouse.

Usually an ERP system contains many distinct pieces of ERP software known as modules that will all function together, operating on one central store of information in a relational database. There could be a human resources module, a project management module and a customer management module, for example, all linked together to form one coherent system that can alleviate much of the hassle involved in running a medium to large sized business. Not only can this improve the logistical side of your business, but having one central, well-designed electronic store of information in a database ensures that there is no redundancy in the form of duplicate data which can lead to conflicts and errors, and also can provide an easy, cost-effective way to backup all of that information using traditional computer storage and backup methods.

As opposed to off-the-shelf software, that is usually built to provide a range of functionality suitable for the general public, an ERP system's modules will usually be developed specifically to fulfill a company's needs. Although having software written is more costly than buying a generic solution, hiring an ERP specialist company to write the software for your business means it will perform exactly as you need it to. An ERP software developer will be able to understand the needs of your business and will work closely with you to solve the particular problems of your business domain. The end result of this process will be a software application, or collection of software, that can streamline your working methods and result in higher productivity and vast savings in the long-term.

The benefits a well-designed and implemented ERP system can bring to your business far outweigh the cost of having it developed. Having an ERP system can free up the time necessary to concentrate on the important aspects of expanding your business such as strategic marketing and planning for the future rather than being bogged down with the mundane and repetitive parts of resource planning.

If your company is need of an ERP System, make sure you search the internet for manufacturing erp software. In addition, you many also want to research distribution erp software on the Internet as well.

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