Enterprise Resource Planning

Enterprise Resource Planning

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Let's see what is an ERP system and it uses,

Enterprise Resource Planning (ERP) is an integrated software which covers overall organization functions. Organizations use ERP to collect, store, manage, and interpret data which generate from their functionalities. It maintains a single database to store those data.

ERP Systems typically handle the manufacturing, logistics, inventory, shipping, invoicing and accounting for a company.ERP Systems help to control business activities like sales, marketing, delivery, billing, production, inventory management, quality management, and human resource management.

Main ERP Modules 

  • Supply chain management
  • Human Resource Management
  • Customer Relationship Management
  • Manufacturing
  • Finance and Accounting
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Tier Classification of ERP Vendors and Systems

ERP systems and vendors are classified as tier 1, tier 2, and tier 3 vendors and systems. The large well-established suppliers at the “top” as tier1and those systems are suitable for a group of companies. Tier 1 systems are not suitable for smaller companies. Smaller ERP suppliers at the “bottom” as tier 2 and 3 vendors.
Examples:

Tier 1  -  SAP, Oracle, Microsoft Dynamics
Tier2   -  Sage,IFS,Infor
Tier3   -  Baan, ABAS
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What are the steps of setting an ERP?

1. Get quotations from ERP vendors.

Before selecting a vendor we must get to know about the tier, the number of license, budget, specific modules of the vendor. Therefore we ask quotations from vendors before we select a suitable vendor.

2.ERP vendor selection

               After we received quotations we have to select the best vendor. It will be done by the consultants who are hired from the outside of the company. These selection vendors select both ERP service provider and ERP configuration consultant.

Most popular ERP vendors are ORACLE, SAP, Sage, and Dynamics.                

3.ERP configuration

            This process is done by configuration consultants. First, they create "To-be" document based on company "As-is" document. "As-is" document is created by the organization and it includes current business processes in the company. "To-be" document includes changes in business processes and best practices. When the organization agrees with the configuration consultants, they start the configuration process.

Most popular ERP configuration consultants are IBM, John Keels, ATTUNE, etc.


An interface of an ERP system


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Advantages of an ERP system

  • Improve and integrated business processes.
  • Reduce administrative and operations costs.
  • Better control over Information Systems.
  • Save time and increase productivity levels.
  • Increase responsive speed to customer requests.
  • Helps to make reporting easier and more customizable.
  • Better visibility of data.
  • Improve the accuracy, consistency, and security of data.
Thank You.!!








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