Enterprise Resource Planning (ERP) Definition

Enterprise Resource Planning (ERP) plays a critical role in business, requiring people to have a general understanding of the key components of ERP to function well in any organization. ERP generally describes a modular software solution that incorporates the financial side of the business and then adds closely integrated app modules that address other areas of the business, including business intelligence (BI), customer relationship management (CRM), Materials Resource Management (MRP), and Supply Chain Management (that is, logistics).
It provides an integrated suite of IT applications that, following best practice, support business processes and activities such as project management, human resource management, finance, procurement and other corporate core functions, both at Headquarters and the field.

To support a global outlook, many firms implemented or are in the process of implementing Enterprise Resource Planning (ERP) Systems, in order to improve level of coordination among national entities of the same firm, and also with business partners.
Though most of the ERP system may claim to have these types of features in their system but the customization required availing them and the cost of implementation may be such that it may not fit in the budget of most of the midsize and project based companies.

ERP stands for Enterprise Resource Planning, it is a business software systems that support business or enterprise throughout the project in organizing, planning, maintaining, tracking and utilization of resources (Man, Machine, Material and Money) effectively.
This is a complex issue well outside the scope of this document and requires a thorough analysis of the individual software packages on the market in conjunction with senior management working with IT consultants who represent the ERP software vendors.
This concept is similar to the so-called best-of-breed approach 65 to software execution, but it shouldn't be confused with it. While in both cases, applications that make up the whole are relatively loosely connected and quite easily interchangeable, in the case of the latter there is no ERP solution whatsoever.

ERP for distribution should not be confused with supply chain and logistics software (SCM), which covers all activities performed by various partners from a supply chain network, including manufacturers, suppliers, logistics companies, and customs brokers.
Storing all of a company's data in a single, relational database makes it possible to write queries and generate reports that give business leaders a sense of how the company is doing and where they can make business process improvements to save money and increase profits.

Prior to implementing ERP systems, or upgrading ERP systems, it is essential that a business works with a business process analyst in order to codify (and perhaps optimize) existing business practices, so that the practices can be supported adequately whenever the ERP system is taken online.
Training takes place shortly after the implementation process, which walks users through the software, showing them how to both understand and use it. Software training, also an additional cost, helps users understand the ins and outs of the software that will be a part of users daily work life.
The areas that will increase the basic ERP requirements are like supply chain management (SCM) with electronic collaboration between supplier and customer, customer relationship what does erp mean management (CRM), business intelligence (BI), product data management, complete product life cycle (PLC) management, inventory and warehouse management using RFID tools.

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