Enterprise resource planning (ERP) systems integrate an organization's key operations, including planning, manufacturing, sales, and marketing onto a single database. ERP automates business processes and combines data from across departments. An ERP system centralizes data in one database that all employees can access. It connects functions like human resources, finance, manufacturing, inventory, sales, and customer service. ERP provides benefits like increased productivity, reduced costs, improved communication internally and externally, and a foundation for future improvements.

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Enterprise Resource
Planning (ERP)
Pradeep Rapolu

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What is ERP?
The practice of consolidating an enterprise’s planning,
manufacturing, sales and marketing efforts into one
management system.
Combines all databases across departments into a single
database that can be accessed by all employees.
ERP automates the tasks involved in performing a
business process.

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Employees
Managers and
Stakeholders
How Do ERP Systems Work?
Central
Database
Reporting
Applications
Human
Resource
Management
Applications
Financial
Applications
Manufacturing
Applications
Inventory
And Supply
Applications
Service
Applications
Sales and
Delivery
Applications
Sales Force
And Customer
Service Reps
Customers Back-office
Administrators
And Workers
Suppliers

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An ERP Example: Before ERP
Customers
Customer
Demographic
Files
Sales Dept.
Vendor
Orders
Parts
Accounting
Accounting
Files
Purchasing
Purchasing
Files
Order is placed
with Vendor
Invoices
accounting
Inventory
Files
Warehouse
Checks for Parts
Calls back “Not in stock”
“We ordered the parts”
“We Need parts #XX”
“We ordered the parts”
Sends report
Sends report
Sends report
Ships parts

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An ERP Example: After ERP
Database
Customers Sales Dept.
Purchasing
Warehouse
Accounting
Vendor
Inventory Data
If no parts,
order is placed
through DB
Orders
Parts
Order is submitted
to Purchasing.
Purchasing record
order in DB
Order is placed
with Vendor
And invoices accounting
Financial Data exchange;
Books invoice against PO
Books inventory
against PO
Ships parts

6. Potential Benefits of ERP
Internal Benefits
– Integration of a single source of data
– Increased productivity
– Reduced operating costs
– Improved internal communication
– Foundation for future improvement
External Benefits
– Improved customer service and order fulfillment
– Improved communication with suppliers and customers
– Enhanced competitive position
– Increased sales and profits

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Who are the main ERP
vendors?
SAP
Microsoft Dynamics
Oracle
Epicor
Infor
RAMCO

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