What Does ERP Stand for and Why Does it Matter?

ERP 300x199 What Does ERP Stand for and Why Does it Matter?For those who want to know what does ERP mean, it stands for enterprise resource planning. The term ERP refers to any kind of business management computer program that helps you or your group utilize an integrated set of applications designed for handling your enterprise or business. With an ERP program you can perform tasks like marketing, sales, manufacturing and development in an integrated manner.

ERP Modules 

ERP applications consist of different modules, some of which are bundled together and while others have to be bought separately, so your business needs to find the one that is best suited for the situation. If you have never tried one before, bear in mind that each module focuses on a specific type of process like marketing or product development.

Different types of modules are available but the most common ERP modules are those for HR, finance, marketing, accounting, and distribution. Other popular modules are for inventory control, material purchasing and planning for a product.

Because ERP has proven to be so successful, software programs have evolved and can now be customized to meet the needs of business managers so they can apply ERP or their various activities. A lot of these programs now have business intelligence as well as CRM modules. If you are going to use different kinds of modules, you will save more money by buying a single package than purchasing them separately.

The Benefits of ERP

The reason businessmen like ERP is that it gives them a lot of options when it comes to putting together your “back office” be it accounting, shipping, planning etc. By using this system you can integrate these different systems into one process. This allows an organization to use one process to manage different systems designed to meet diffract needs. While ERP is commonly referred to as software, it is actually more like a specific type of methodology. But the fact that it uses software has led people to classify it as such.

With an ERP program you can have a system capable of spanning several departments in a company. In many instances enterprise resource planning can transcend the limits of a corporation and integrate a company’s suppliers and partners so that it comes with extra functions. Because the ERP can encompass a lot of functions, the system can extend beyond just one piece of application.

Other Information 

The fact is that each software implantation can be made to match your business process. Do keep in mind that some ERPs can be very complex and take a lot of time to prepare. The benefit of using software for its implementation however, is that it can help cut the preparation time and in many cases can save a corporation millions of dollars.

As any large company will tell you an ERP makes for one of their biggest investments. If the system is very large, then the company may put the system in place in an incremental manner. This is where modular applications come into place as they make the integration slower and easier. This of course, makes a big difference.

Now that you know what does ERP mean, it has become easier to see why a lot of companies and corporations around the world use them. Without it, their chances of successfully marketing a product go down.

Sham is a free lancer writer of http://www.whatiserp.org/

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