by C.V.Rajan

Created on: September 15, 2009

Enterprise Resource Planning (ERP) is an integrated Information management system to encompass practically all the activities of a large business organization. What ERP tries to accomplish is to integrate data and processes of an organization to a single system working on a unified and common database.

ERP came in originally meant for mammoth organizations to bring in a fair sense of order and balance amidst chaotic pulls, pressures and distractions between various departments and units. However, the tremendous knowledge and experience gained by ERP vendors over the period of time in fine tuning the ERP functionalities has made the ERP systems to be flexible and efficient enough to cater to the needs of a wide spectrum of organizations, whether they are in manufacturing or in service, whether they are massive organizations or SMEs.

A typical ERP system consists of several functional modules and the trick of the trade is to make use of the appropriate modules to suit to the specific organizations needs and integrate them seamlessly. An ERP system for, say, a manufacturing firm may include the functional modules of Manufacturing, Production Engineering, Plant Maintenance Management, Quality Assurance Systems, Pay-roll, Financial and Cost Accounting, Personnel Management, Warehouse Management, Supplier/Vendor Management, Sales and Distribution Management, Customer Relations Management and so on.

It is up to the organization to pick and chose the most appropriate modules that can potentially contribute in improving the overall efficiency and cost competitiveness of the organization and integrate them with their existing systems and practices. It calls for necessary gives and takes, adjustments and minimal need on customization. Other than the costs of ERP, it requires a high degree of commitment from management and staff, the involvement of consultants and functional specialists to fine-tune the system best suited to the organization and a definite time period for acquisition of hardware, software, deployment of manpower, system transition and trouble-shooting.

Once a neatly ironed out ERP system is in place, the management can be assured of an all-encompassing view of their customers, products, and operations. This can immensely help in formulating better business strategies, management practices and quality processes that in turn can help lowering prices, and providing better, higher quality of products and services to their customers.

== Can SMEs afford to

• 1
• 2
• Next Page >>