ERP i.e. Enterprise Resource Planning is used to plan the business in a organised and structured manner. ERP systems are software systems for business management which comprises of modules such as sales, marketing, finance, human resource, payroll, finance and accounting, distribution, service and maintenance. These are generally high cost systems with high maintenance. Benefits of ERP is that there is no data loss or redundancy.
The benefits of implementing a ERP i.e.Enterprise Resource Planning are as follows:-
- An good business operating system should be one that grapples the profits of your business.
- It saves time.
- It saves labor.
- It saves your efforts to do work manually.
- You can sit and relax and ERP will do its work.
- Ease of communication among departments.
- No file work required.
- Maintenance of records.
- Skill development.
- Maintenance of basic infrastructure.
- Systems and Practices.
ERP system helps to manage the processes of various departments in the organisation. ERP is a integrated solution to all your business processes.
Independent, Modular and Integrated are the key words for an OSMTM implementation.
ERP’s extended version is Operating system for Manufacturing. An OSMTM, besides the internal functions of an Organization, may also integrate customers, suppliers, employees and other stake holders.
It helps to adapt the best practices followed worldwide for carrying out all business processes.
As small to medium sized businesses (SME) look for new ways to increase efficiency and profitability they face three challenges:
1. Lack of knowledge of good systems and practices
2. Nil to poor implementation of systems
3. Lack of controls
4. Fulfillment of Legal Compliance