Enterprise resource planning is software for business management, and its implementation can benefit the business to a very high extent. It is a suite of the integrated applications that company can use to store, collect and also interpret the data from many of the business activities. It includes product cost and planning, service and manufacturing delivery, sales and marketing, inventory management, payment, and shipping.
Enterprise resource management provides a very integrated view of all the core business processes, and this is most often done in real time. It uses the standard databases that are maintained by the database management system.
The implementation of this kind of planning can cover a lot of functional areas. These functional areas are as follows.
• Management accounting that includes costing, budgeting, activity based costing and cost management can be covered under ERP with many enterprise resource planning examples available from multiple providers around the world.
• Financial accounting that includes fixed assets, ledger, payables and receivables are easily covered.
• Human resource management that includes, training, recruiting, payrolls, benefits, separation and retirement are also covered.
• Order processing, order entry, order for cash, pricing inventory and shipping are key areas that are easily processed because of enterprise resource planning.
• The entire area of supply chain management is also covered because of this business software.
• Project management is another important area of business that can be managed effectively.
It can easily be assumed that Enterprise resource planning can cover numerous areas of the firm. It just requires the user to simply implement it in an effective manner.
The process of implementation includes a few important steps that must be followed without fail. These steps include process preparation, configuration, two- tier enterprise resource planning, customization, extensions and also data migration. All these steps must be followed mandatory to successfully implement enterprise resource planning into your business.
The business software that is this kind of planning has numerous advantages and benefits associated with it. These include sales forecasting that enables the optimization of inventory, the tracking of orders, tracking of revenue and also matching all the purchase orders. It actually eliminates the need of synchronizing the changes that are present between the multiple systems by bringing in legitimacy and transparency.
Apart from the above-mentioned benefits it provides a very comprehensive view of the enterprise and protects all the sensitive data of the business or the company. These are reasons for the success of enterprise resource planning easily.