2. Effective Resource Planning
oERP
is business management software-usually
a suite of integrated applications-t that a
company can use to store and manage data
from every stage of business, including:
•Product planning, cost and development
•Manufacturing
•Marketing and sales
•Inventory management
•Shipping and payment
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3. o ERP
provides an integrated real-time
view of core business
processes, using common databases
maintained by a database
management system.
o Organizations consider the ERP
system a vital organizational tool
because it integrates varied
organizational systems and facilitates
error-free transactions and production.
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4. Advantages
Chronological history of every
transaction through relevant data
compilation in every area of operation.
Order tracking, from acceptance
through fulfillment.
Revenue tracking, from invoice
through cash receipt.
Matching purchase orders, inventory
receipts and costing.
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5. Disadvantages
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o
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Customization is problematic.
Re-engineering business processes to fit the ERP system may
damage competitiveness or divert focus from other critical activities.
ERP can cost more than less integrated or less comprehensive
solutions.
High ERP switching costs can increase the ERP vendor's
negotiating power, which can increase support, maintenance, and
upgrade expenses.
Overcoming resistance to sharing sensitive information between
departments can divert management attention.
Integration of truly independent businesses can create unnecessary
dependencies.
Extensive training requirements take resources from daily
operations.
Due to ERP's architecture (OLTP, On-Line Transaction Processing)
ERP systems are not well suited for production planning and supply
chain management (SCM).
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6. ERP Modules
ERP software is made up of many
software modules that are individually
purchased, based on what best meets
the specific needs and technical
capabilities of the organization.
Each ERP module is focused on one
area of business processes, such as
product development or marketing.
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8. Production Planning Module
Production planning optimizes the
utilization of manufacturing
capacity, parts, components and
material resources using historical
production data and sales forecasting.
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9. Purchasing module
Purchase module automates the
processes of identifying potential
suppliers, negotiating price, awarding
purchase order to the supplier, and
billing processes. Purchase module is
tightly integrated with the inventory
control and production planning
modules. And also supply chain
management software.
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10. Inventory Module
The activities of inventory control
involves in identifying inventory
requirements, setting targets, providing
replenishment techniques and
options, monitoring item
usages, reconciling the inventory
balances, and reporting inventory status
Integration of inventory control module
with sales, purchase, finance modules
allows ERP systems to generate vigilant
executive level reports.
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11. Finance module
The financial module is the core of
many ERP software systems.
This module of the ERP system will
take care of all the accounts related
entries and their impact on the whole
system.
It gathers financial data from various
functional departments, and generates
valuable financial reports such as
general ledger, trail balance, balance
sheet and quarterly financial
statements.
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12. HR module
ERP HR module streamlines the
management of human resources and
human capitals.
HR modules routinely maintain a
complete employee database
including contact information, salary
details, attendance, performance
evaluation and promotion of all
employees.
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13. Sales And Marketing Module
ERP sales module implements
functions of order placement, order
scheduling, shipping and invoicing.
Sales module is closely integrated
with organizations’ ecommerce
websites.
Many ERP vendors offer online store
front as part of sales module
ERP marketing module along with
CRP supports lead generation, direct
mailing campaign and other marketing
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