Enterprise resource planning (ERP) systems are packaged software programs that allow companies to (1) automate and integrate the majority of their business processes, (2) share common data and practices across the entire enterprise, and (3) produce and access information in a real-time environment.
Here knowledgiate demonstrates a solution to the problem of non-integrated, non-centralized information. Implementing an ERP system should help a company to provide customers with the highest quality products and best possible service. In theory, the ERP system should link the customer end of the supply chain with all functional areas responsible for the production and delivery of a product or service all the way upstream to suppliers. Increasingly, the front end of the business (the area that deals directly with customers) will allow customers to access all necessary data about their orders through the Internet. The following quote describes the benefits from ERP implementation for the whole business, its marketing function, and its customers:
The privileges of an ERP package to a business are in reduced overheads, improved customer service and better quality, and more timely management information. Reduced overheads should be achieved through the elimination of duplication of effort in duplicate keying and reconciliation of independent systems. Better management information becomes available when all company information is held in one database which can be queried to provide quality reports on margins broken down by customer, product, rep, area, etc. E-commerce has the potential to offer a quantum leap in customer service by giving the customer direct access to your systems.
ERP’s key concept is a central depository for all organizational data so that they are accessible in real time by and in an appropriate format for a decision maker. Data are entered into the central depository through a series of modules. Usually 30 or more modules are required to complete an ERP installation.