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Thursday, 9 November 2017

What does ERP stand for and what does it do for businesses today?


ERP stands for Enterprise Resource Planning, is a large-scale software program designed for modern businesses, both large and small. A simple definition is that ERP systems aid the flow of internal business processes and allow for communication between a business’s departments and its internal functions and data. 

Using software-generated automated reports, enterprise resource planning systems are able to give companies an immediate picture of its real-time operations: production, inventory and order processing. ERP software tracks a business’s resources (raw materials, cash, employees), overhead and commitments (employee payroll, purchase orders and customer orders) for individual departments and for the company as a whole. Most ERP systems are modular. 

Workers can access only the modules they need in order to complete their duties while higher-ups can access all modules in order to both create and review data and reports. By keeping work zones modular, the security of the company is better protected as a whole.

 The more modules offered by an ERP system, the more specific reports and projects could get if necessary; one potential drawback to a company having many modules is that each module represents an additional cost for the purchasing company. 

ERP systems are a powerful way for companies to manage costs, service and production.

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