subject: The Business Buying Guide To Erp Systems [print this page] Enterprise resource planning (ERP) refers to a management system that integrates the departments and functions of a business unified system. The aim of ERP is to aid interaction between departments and allow all the different business functions access to vital information. But this can lead to concerns about data integrity and security. A company like yours must handle this issue carefully. Plan appropriate dissemination of data in collaboration with your ERP consultant.
Enterprise resource planning (ERP) systems are typically used to replace a disparate set of individual systems strung together in a complex and clumsy manner. ERP packages offer a solution to this while bringing specific and tangible business benefits.
"ERP systems make it much easier to integrate systems across multiple locations.
"Every employee in the chain sees the bigger picture and becomes more accountable for their role in order fulfillment.
"As all department systems are connected by the ERP solution, they can gain access to essential inter-departmental information. Thus, any employee can see the information required to fulfill an order.
"ERP systems can speed up the manufacturing process through automation in areas such as
"Procurement and production planning. This can help reduce the costs of carrying inventory and
"Increase inventory turnover.
"Your manufacturing product cycle becomes faster "" the process from designing to manufacture readiness takes less time thanks to better information flows.
ERP software is modular in nature. During the selection process, evaluate the software functions with sample historical data to find the best match. It is vital to identify the functions and features in the new ERP system that will provide meaningful and quick access to data.
Other than the usual due diligence activities for vendor selection, keep in mind the system requirements and underlying technologies that power the product your vendor provides. These may have significant bearing on your future organizational objectives.
A vital step in choosing an ERP system is the selection of a project manager. The project manager acts as a liaison with vendors, coordinates internal needs assessments and creates a selection team, which should represent all the business units in your organization.
