What is ERP (Enterprise Resource Planning)

What is ERP?

ERP stands for Enterprise Resource Planning and it is a broad set of activities that helps a business manage the important parts of its business. The information made available through an ERP system provides visibility for key performance indicators required for meeting corporate objectives.

Enterprise Resource Planning systems automate and integrate the core functionality of an organization. ERP facilitates the flow of information among the different functions of an enterprise, while also permitting information sharing across organizational units and geographical locations

ERP software applications can be used to manage product planning, parts purchasing, inventories, interacting with suppliers, providing customer service and tracking orders. ERP can also include application modules for the finance and human resources aspects of a business.

To enable the easy handling of the system the ERP has been divided into the following Core subsystems: ^[1]

Sales and Marketing

Master Scheduling

Material Requirement Planning

Capacity Requirement Planning

Bill of Materials

Purchasing

Shop floor control

Accounts Payable/Receivable

Logistics

Asset Management

Financial Accounting

 

References

[1] Enterprise Resource Planning ; http://www.erpfans.com/erpfans/erpca.htm

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