ERP provides an integrated view of core business processes, often in real-time, using common databases maintained by a database management system.
ERP systems track business resources—cash, raw materials, production capacity—and the status of business commitments: orders, purchase orders, and payroll. The applications that make up the system share data across various departments (manufacturing, purchasing, sales, accounting, etc.) that provide the data..
Enterprise system software is a multibillion-dollar industry that produces components that support a variety of business functions.
ERP Software Modules
ERP software typically consists of multiple enterprise software modules that are individually purchased, based on what best meets the specific needs and technical capabilities of the organization. Each ERP module is focused on one area of business processes, such as product development or marketing. Some of the more common ERP modules include those for product planning, material purchasing, inventory control, distribution, accounting, marketing, finance and HR.
Benefits of Using ERP Software
- Sales forecasting, which allows inventory optimization..
- Order tracking, from acceptance through fulfillment.
- Revenue tracking, from invoice through cash receipt.
- ERP can improve data security.
- Eliminates the need to synchronize changes between multiple systems—consolidation of finance, marketing, sales, human resource, and manufacturing applications.