What is ERP system and how it works?

ERP system helps to manage the processes of various departments in the organisation. ERP is a integrated solution to all your business processes.

Today, ERP is no longer a luxury that a few Companies can afford to indulge in or showcase it as a status symbol. It is an absolute necessity for any Organization that wants to sustain and grow. All businesses, from small to medium and large, look for new ways to increase efficiency and profitability. An ERP (Enterprise Resource Planning) has the potential to improve all your business operations by:-
1)  facilitating useful communication between departments.
2) Making your entire system (organization) more responsive to the needs of all your stake holders.
An ERP system integrates all functions across a company to a single computer system, having a Centralized Data base, that can serve all those functions’ specific needs.
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
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