ERP

Enterprise resource planning (ERP) systems integrate internal and external management information across an entire organization, embracing finance/accounting, manufacturing, sales and service, customer relationship management, etc. ERP systems automate this activity with an integrated software application. Their purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders.

ERP systems can run on a variety of computer hardware and network configurations, typically employing a database as a repository for information.

Characteristics

ERP (Enterprise Resource Planning) systems typically include the following characteristics:

• An integrated system that operates in real time (or next to real time), without relying on periodic updates.^{[citation needed]}
• A common database, which supports all applications.
• A consistent look and feel throughout each module.
• Installation of the system without elaborate application/data integration by the Information Technology (IT) department.^[10]

Finance/Accounting

General ledger, payables, cash management, fixed assets, receivables, budgeting, consolidation

Human resources

Payroll, training, benefits, 401K, recruiting, diversity management

Manufacturing

Engineering, bill of materials, work orders, scheduling, capacity, workflow management, quality control, cost management, manufacturing process, manufacturing projects, manufacturing flow,activity based costing, product life cycle management

Supply chain management

Order to cash, inventory, order entry, purchasing, product configurator, supply chain planning, supplier scheduling, inspection of goods, claim processing, commissions

Project management

Costing, billing, time and expense, performance units, activity management

Customer relationship management

Sales and marketing, commissions, service, customer contact, call center support

Data services 

Various "self–service" interfaces for customers, suppliers and/or employees

Access control

Management of user privileges for various processes

[edit]Components

·         Transactional database

·         Management portal/dashboard

·         Business intelligence system

·         Customizable reporting

·         External access via technology such as web services

·         Search

·         Document management

·         Messaging/chat/wiki

·         Workflow management

Enterprise Resource Planning (ERP) should enable your company to do just that. What tools you use and how should be based on what your organization needs. In what order you implement the system should also be based on your companies situation. So what ERP is and does maybe be different from organization to organization but……

At its core it should

·         Process sales orders – entry, shipping, invoicing

·         Accounting fully integrated and functional

·         CRM

·         Costing in any mode Standard, Average, Lot

·         Production scheduling

·         Estimating

·         Bar Coding

·         Reports

·         Purchasing

·         Bills of materials and routing’s

Every company has different needs and priorities so you may not need all the things listed or you may need some different things, the point is, ERP is about what you need more than what the software can do. Canned software or approaches rarely work in the small to mid size market because organizations have different expectations and issues.