ERP software integrates all departments and functions of a business into a single system running from a single database. It allows different departments to easily share information. ERP provides advantages like streamlined processes, improved communication, efficiency, and customer service. OpenERP is an open source ERP system that provides comprehensive business applications like sales, CRM, manufacturing, purchasing, accounting, warehouse management, and HR. It offers benefits like modularity, flexibility, no vendor lock-in, and affordable pricing. Key modules help manage manufacturing, purchasing, inventory, finance, and human resources.

1. ERP for Small Businesses
Overview:
What is ERP?
ERP, is an abbrivation for Enterprise Resource Planning. It is an
Integration of
Business Management Practices and modern technology. It combines functions of all
departments of an enterprice together into a single, integrated software program that runs
off a single database so that the various departments can more easily share information
and communicate with each other.
ERP software is flexible enough that you can install some modules without buying
the whole package.People in different departments all see the same information and can
update it. When one department finishes with the order it is automatically routed via the
ERP system to the next department. To find out where the order is at any point, you need
only log in to the ERP system and track it down.
Advantages of ERP Systems:
There are many advantages of implementing an EPR system. A few of them are
listed below:
➢ A perfectly integrated system chaining all the functional areas together
➢ The capability to streamline different organizational processes and workflows
➢ The ability to effortlessly communicate information across various
departments
➢ Improved efficiency, performance and productivity levels
➢ Enhanced tracking and forecasting
➢ Improved customer service and satisfaction
What is Open ERP?
OpenERP is one of the leading Open Source ERP Systems. It is a comprehensive
suite of business applications including Sales, CRM, Project management, Warehouse
management, Manufacturing, Financial management, Human Resources etc.,
Small businesses and startups should start with ERP Systems as early as possible to
organize their business professionally, avoiding paperwork and redundant information
distributed in various documents and databases. With Open Source, a business does not
need an IT staff to manage a website.

2. Small and medium-sized businesses can afford to have all of the business tools
available to them that the much larger organizations have. The greatest advantage of
Open source ERP application is that it is available at free of cost.
In open source ERP everything is decided by the code .Therefore companies can do
the necessary modifications in code and without much support from the vendor. Another
advantage of open source is that it does not interfere with the regular schedule of the
company during the implementation stage.
Benefits:
Modular : OpenERP unique modular approach allows customers to start with one
application and to add other modules later on.
Flexible : OpenERP allows you to customize the user interface and manage your business
processes in only a few clicks.
No Lock-in: The same version of OpenERP can be used either On-site or Online. Allows
customers to choose what is best for them.
Affordable : The absence of license fees makes OpenERP very affordable.
Key Modules:
Manufacturing :
• Manages Manufacturing resources
• Creates multilevel bill of materials
(BoM)
• Provides scrap management. Partial
production is also possible.
• Creates Production/Procurement
orders and manages repairs.
• Organises manufacturing orders based on priorities
• Launches purchase orders for missing components and assigns products in stock.

3. Purchase Management:
• Allows to organize entire
company’s purchases by enabling
you to manage the entire process.
• Allows you to request a quote
from the supplier for the list of
products that need to be purchased.
• All Purchase Orders can be
viewed according to the state they
are currently in.
• Contact information of all suppliers including the address, price lists and other
details are maintained in centralized address book.
• Generates supplier invoices automatically on purchase and send them for approval
to the finance department
Warehouse Management:
• Allows multi warehouse
management, based on hierarchical
locations structure.
• Double entry inventory
system, allows to manage internal as
well as external
locations.
• Allows to manage back
orders.
• Automated inventory valuation, serial numbers, quality control etc.,
• Automatic Procurements, helps you to avoid out of stock situations.
• Allows to trace all inventory transactions made.

4. Finance Management :
• Fully integrated accounting
module that covers financial
accounting, analytic
accounting, third party
management, taxes management,
budgets, assets, etc.
• Multi-company, multi-
currency, multi-analytic axes
• Real-time consolidation of
multiple charts of accounts
• Very good agronomy for fast encoding of entries and invoices
• Integrated analytic/cost accounting
CRM
• Manages meetings and the
company calendar
• Manages pre-sales and after-
sales service
• Manages phone calls and/or a
call center
• Manages employment offers
• Manages technical service
• Tracks bugs and new functional requests

5. Human resource Management :
• Management of staff and the
holiday calendar
• Management of employment
contracts
• Management of holiday and
sickness breaks
• Managing claims processes
• Management of staff performance
• Management of skills and competencies