Enterprise Resource Planning

An ERP system is an attempt to integrate all functions across a company to a single computer system that can serve all those functions specific needs.

Traditional System in Organization

After ERP

Major Modules in ERP

Finance Resource Management

Supply Chain Management

Human Resource Management Customer Resource Management Manufacturing Resource Management

Features of ERP
The core Feature of ERP Software is Single Database management

ERP System Automates Business Process

ERP Selection Criteria Company Technology Function Fit Support

Cost of Ownership

Merits ( Advantages) of ERP

Streamlining processes and workflows with a single integrated system. Reduce redundant data entry and processes and in other hand it shares information across the department.

Establish uniform processes that are based on recognized best business practices
Improved workflow and efficiency Improved customer satisfaction based on improved on-time delivery, increased quality, shortened delivery times Reduced inventory costs resulting from better planning, tracking and forecasting of requirements Turn collections faster based on better visibility into accounts and fewer billing and/or delivery errors

Decrease in vendor pricing by taking better advantage of quantity breaks and tracking vendor performance
Track actual costs of activities and perform activity based costing Provide a consolidated picture of sales, inventory and receivables

Issues & Challenges in Implementation

Limitations of ERP technical capabilities Inconsistency with existing business processes

Costs - implementation maintenance

(hardware,

software,

training,

consulting)

and

Impact on organizational structure (front office vs. back office, product lines, etc.) Changes in employee responsibilities

Flexibility of software system upgrades

Implementation timelines Availability of internal technical knowledge and resources Education and training Implementation strategy and execution Resistance to change

Major ERP Vendors SAP Oracle Application The Saga Group Microsoft Dynamics

People Soft

Supply Chain Management

Supply chain: Network of organizations and processes for: Procuring raw materials Transforming them into products Distributing the products Return Management Forecasting & Planning Upstream supply chain: Firms suppliers, suppliers suppliers, processes for managing relationships with them Downstream supply chain: Organizations and processes responsible for delivering products to customers

Customer Relationship Management

Knowing the customer In large businesses, too many customers and too many ways customers interact with firm Customer relationship management (CRM) systems Capture and integrate customer data from all over the organization Consolidate and analyze customer data Distribute customer information to various systems and customer touch points across enterprise Provide single enterprise view of customers