2. Enterprise resource planning
Enterprise resource planning (ERP) is
business process management software
that allows an organization to use a system
of integrated applications to manage the
business and automate many back office
functions related to technology, services
and human resources.
3. Significance of
Enterprise Resource Planning
• 1. Enhance productivity, flexibility and customer
responsiveness
• 2. Eliminate costs and inefficiencies
• 3. Data consistency
• 4. Extend your business using the Internet
4. 1. Enhance productivity, flexibility and customer
responsiveness
• By integrated core business processes together in one single application, it
helps
• company maximize the efficiency of business process across the entire
organization.
• Plant manufacturing can produces product faster. Increase on time
delivery,
• Increase productivity, Increase ability to forecast demand to supplies,
Increase order
• capacity, and improve customer service (Customer Relationship
Management (CRM)).
5. 2. Eliminate costs and inefficiencies
• Using an ERP system to standardize business processes can
dramatically improve
• company’s operation. ERP enable company to manage relationship
with vendor results in
• lower cost for purchased items. Better resource management results
in more
• inventory turns and decrease the level of inefficiencies.
6. 3. Data consistency
• Because an ERP system integrates all business management
functions, it decreases level of inconsistency information from
different systems.
• Thus, by using ERP system, managers can gather correct information
and make a right decision.
7. 4. Extend your business using the Internet
• By integrating all business functions together in one system,
it increases ability of a company to use internet as part of
the business strategy. Web-enabled technology allows you
to access information, sell product, run business processes,
and communicate with customers and partners at any time
and from anywhere in the world.