ERP represents Enterprise Resource Planning, which is a software wizard that brings together adventurous functions of a business. Such functions may include and not limited to; manufacturing and production, accounting and finance, HR, supply-chain and customer relationship management.
Three vital components that ERP integrates and synchronize are Information Technology, Business Processes and Business Objectives. The abilities that ERP brings by combining departments and components of a business together are many. For instance, these may be demographically far apart, ERP draws them to a comprehensive and central system.
By synchronizing and integrating business processes through ERP, efficiency and results can be measured effectively. CRP(Customer Relationship Management) is resourceful for being able to monitor and see up-to-date customer service processes and their satisfaction perceptions. ERP is valuable for its capability to improve financial performance of a company when well implemented. This is possible through prevention of accidental losses, fraud and theft.
ERP’s key feature of giving business owners and managers, the privilege to know where money is spent improves efficiency. This aspect presents owners and managers with an opportunity to target areas to reduce costs. The model is a transparent communication tool that joins customers and suppliers, into a department of a company, to ensure solid exchange of information. Such information may include, purchase orders, delivery schedules and performance reports.