06 July 2010
ERP is the acronym of Enterprise Resource Planning. ERP utilizes ERP software applications to improve the performance of organizations' resource planning, management control and operational control. ERP software is multi-module application software that integrates activities across functional departments, from product planning, parts purchasing, inventory control, product distribution, to order tracking. ERP software may include application modules for the finance, accounting and human resources aspects of a business.
06 July 2010
ERP is stand for Enterprise Resource Planning. Don’t ask me why the former choose that words. I don’t know exactly what the meaning of those words. So, let me know if you have the right meaning. However, this is my guess. Enterprise. This word most likely refers to the scope of business process involved – not the scope of organization because a lot of ERP software has been implemented in Small and Medium business today. Resource Planning. It could be referring to its features. You know that ERP contains many resources to be maintained, such as inventory, employees, vendors, production machines and so on. What will you do with that resource database? I think you have to establish a plan so that it can be utilized effectively and efficient. ERP software has capability to maintain as well as plan the resources.
Okay, we better stop guessing the meaning of the words and move on to right definition.
Definition :
It is a company-wide computer software system used to manage and coordinate all the resources, information, and functions of a business from shared data stores. ERP relates to the integrated software infrastructure that supports the entire company business process. ERP refers to a view of a company and all its parts as connected whole, rather than small silos of activity The term of ERP is originally derived from Manufacturing Resource Planning (MRP II) and Material Resource Planning (MRP). MRP evolves into ERP when capacity planning activity and routing become a part of the standard software activity.
ERP system typically handles company’s accounting, logistic, distribution, shipping, manufacturing, procurement and sales order.
ERP software can aid in the control of many business activities such as sales, marketing, finance management, inventory management, delivery, production, quality management and so on.
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