Getting to Know Enterprise Resource Planning (ERP) Better

[sohanuzzaman57]

Have you ever heard of the term ERP? Then, what is meant by ERP? Enterprise Resource Planning System or better known as the ERP system is an abbreviation of three elements of the word enterprise (company/organization), resource (resources), planning (planning).

Enterprise Resource Planning (ERP) is a concept for planning and managing company resources in the form of an integrated and multi-module program application package designed to serve and support various functions within the company.

What is Enterprise Resource Planning (ERP)?
ERP ( Enterprise Resource Planning ) is an information list of vietnam cell phone numbers system model that enables organizations to automate and integrate their core business processes.

ERP breaks down traditional functional barriers within an organization by facilitating data sharing, information flow, and introducing common business practices among all users in the organization.

The function of this system is to provide standardization, simplification, and integration of business processes with various human resources, financial resources, and distribution.

This technology was originally created by Gartner in 1990 with the aim of describing material requirements planning and manufacturing resource planning.

ERP evolved from Manufacturing Resources Planning (MRP II) which enabled tremendous progress in the management of manufacturing processes.

Modular ERP systems typically handle manufacturing processes, logistics, inventory distribution , invoicing , including activities related to company accounting.

Benefits of Using an ERP System for Companies
In companies or organizations that do not implement an ERP system, they generally use a separate database system where each work unit has its own database.

With examples such as; the marketing division has a marketing database, the human resources or HRD division has its own HRD database, the purchasing division has its own purchasing database, and the finance division has its own financial database.

Separate and different database systems will tend to experience frequent incompatibilities, making them difficult to manage.

This is different from the ERP ( Enterprise Resource Planning ) system which was developed to replace separate systems with integrated ones so that management is more effective and efficient.

Here are some of the benefits that can be enjoyed by organizations that successfully implement an ERP system: