ERP, or enterprise resource planning, is a technique which attempts or try to consolidate all the function of the company department in a separate single computer system which can be used in order to help the need of the each department. The ultimate objective of the enterprise resource planning is to help the company gain profit as this will reduce the utility of the hardware, software and the human power of the organization with no reduction in the production technique, delivery system and the service.
When you say this to any layman it will seem to him that this process is very easy. But when you try to implement this process you will understand the difficulty in making into a practical working model. They are not as easy as they seem. Every company designs its own set of programs according to their need and aim to make profit. Each department will have the control over each section. Generally the human resource people will look after the Employee records while the financial section will, take care of the employee compensation, payroll computations. For company products and services, invoicing and billing admin. dept is given the responsibility.
The ultimate objective of creating these ERP or so called enterprise resource planning is to merge the functioning of all these tasks. Whoever wants to share any information or wants to know about any information about the company will be able to know or access using this enterprise resource planning. Whenever a decision is taken by any one in any of the departments of the company then other people in the company will also be able to know about the changes made and hence they can act accordingly.
Some of the places where the enterprise resource planning finds its application is the order and the delivery of the consumer request in any company. The first step is to make a deal with the consumer. When the deal is done it should be passed to the next department then to Inventory and Warehousing department and then finally deliver the goods for the customer and collect the money from the customer or the cost will be collected previously during the time of the deal itself.
Benefits of these techniques
When the information is stored in a single system the workers can easily know the status of the deal. Otherwise, they would have to ask the client to consult with the respective departments of the company. Sometimes, customer may become annoyed with this and they will not feel pleasant about coming to the same company to make another deal. With this technique, it is easy to manage the data and there is not too much strain in doing them. If you have the enterprise resource planning system then it implies that you need not have any kind of the other software’s to know about the status of the company. This makes the task of the worker easier and eases the stress that they have to experience otherwise. This will save lots of money for the company, which in turn will contribute towards the growth of the company.
