Enterprise resource planning (ERP) predicts and balances demand and supply. Although there is no agreed upon definition for ERP systems, their characteristics position these system as integrated, all encompassing. Complex mega-packages designed to support the key functional areas of an organization.
It is an enterprise-wide set of forecasting, planning and scheduling tools, bring together people which links customers and suppliers into a complete supply chain, employs proven processes for decision-making and coordinates sales, marketing, operations, logistics, purchasing, finance, product development and human activities.
The software of the systems are powerful that is enable businesses to integrate a variety of disparate functions.
The primary purpose of implementing ERP is to run the business efficiently and effectively in this brutally competitive and rapidly changing business environment.
Enterprise resource planning is used by company to coordinate information in every area of the busines. It helps to manage company wide business processes, using a common database and shared management reporting tools. Enterprise resource planning also allows a company to produce and access information in a real time environment. It gives the power to the right person to make decisions at the right time. This is only when the entire organization shares the same information and views it in the same perspective.
Enterprise resource planning (ERP)
