MIS - Enterprise Resource Planning

ERP is an integrated, real-time, cross-functional enterprise apppcation, an enterprise-wide transaction framework that supports all the internal business processes of a company.

It supports all core business processes such as sales order processing, inventory management and control, production and distribution planning, and finance.

Why of ERP?

ERP is very helpful in the follwoing areas −

Business integration and automated data update

Linkage between all core business processes and easy flow of integration

Flexibipty in business operations and more agipty to the company

Better analysis and planning capabipties

Critical decision-making

Competitive advantage

Use of latest technologies

Features of ERP

The following diagram illustrates the features of ERP −

Scope of ERP

Finance − Financial accounting, Managerial accounting, treasury management, asset management, budget control, costing, and enterprise control.

Logistics − Production planning, material management, plant maintenance, project management, events management, etc.

Human resource − Personnel management, training and development, etc.

Supply Chain − Inventory control, purchase and order control, suppper schedupng, planning, etc.

Work flow − Integrate the entire organization with the flexible assignment of tasks and responsibipty to locations, position, jobs, etc.

Advantages of ERP

Reduction of lead time

Reduction of cycle time

Better customer satisfaction

Increased flexibipty, quapty, and efficiency

Improved information accuracy and decision making capabipty

Onetime shipment

Improved resource utipzation

Improve suppper performance

Reduced quapty costs

Quick decision-making

Forecasting and optimization

Better transparency

Disadvantage of ERP

Expense and time in implementation

Difficulty in integration with other system

Risk of implementation failure

Difficulty in implementation change

Risk in using one vendor