ERP Application

A detailed Summary of ERP Application

Increasingly, corporations are recognizing the strategic role of the operations function. These organizations are discovering that a focus on customer needs is effective only if the operations function is designed and managed to meet those needs. From acquiring raw materials to fabricating parts, to assembling products, to customer delivery, a total systems perspective can enable us, in the ideal, to fashion an operations function like the inner workings of a finely tuned machine. That operation can be fine-tuned by using modern information systems. Enterprise Resource Planning (ERP) software systems provide comprehensive management of financial, manufacturing, sales, distribution and human resources across the enterprise. The ability of ERP systems to support data "drill down" and to eliminate the need to reconcile across functions is designed to enable organizations to compete on the performances of the entire supply chain. (Welti) To utilize these capabilities managers have to learn how to manage processes in the ERP environment.

Just what is ERP? It doesn't live up its acronym. Forget about planning-it doesn't do that-and forget about resource, that's a throwaway term. Keep in mind the enterprise part. That is ERPs true am

What better way to transform a company than to have one seamless computer operation run the financials, human resources, manufacturing and other important functions. But by 1998 the ERP industry began to slow down. The main reason is businesses started to change with the Internet revolution and the surprising speed with which e-business was carried out. It was no longer enough to connect internally. The Internet made it possible to open up the companies' borders and move them out to encompass all of its trading community-its suppliers, vendors and partners. It brought forth a new realm of doing business where everyone can be connected to anyone, anytime at the click of a mouse.

The idea behind ERP is that the software needs to communicate across functions. The financial module can cut accounts payable checks as soon as the loading dock clerk confirms that the goods have been received in inventory. Similarly the accounts receivable can generate an invoice as soon as the shipping clerk says the finished goods are on the truck to the customer. All this is done with minimal human intervention and paperwork. The downside to ERP is the expense in terms of time, effort and money. To do ERP right, the way business is done will need to change. The way people do their jobs will need to change also. As we

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Approximate Word count = 879
Approximate Pages = 4 (250 words per page double spaced)

Category: Technology

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ERP Application

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