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Enterprise Resource Planning

Essay by   •  May 17, 2011  •  Essay  •  734 Words (3 Pages)  •  1,941 Views

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Enterprise Resource Planning (ERP) is the most recent high-end answer which information technology has provided to companies function. Enterprise Resource Planning purpose is to try to connect different tasks and divisions throughout the company. The Enterprise Resource Planning resolution is to try to incorporate operation procedure and information that comes in for the company, so trying to merge the resources of a company such as products, revenue, and material through information. Companies use Enterprise Resource Planning to increase their performance and effectiveness of the company.

Throughout the 1990s, most large companies used Enterprise Resource Planning to handle all of its functions such as: finance, requirements planning, human resources, and order fulfillment on the basis of a single, integrated set of corporate data. This is because Enterprise Resource Planning assured changes in effectiveness, for example, shorter intervals between orders and payments, lower back-office staff requirements, reduced inventory, and improved customer service (Hillstom, K. and Hillstorm, L, 2011).

However, when Enterprise Resource Planning began to fall and merchants had to decide to change their focal point to smaller companies. According to a survey by AMR research reported in Modern Materials Handling, the overall market for ERP systems grew 21 percent in 1998, despite the fact that sales to companies with greater than $1 billion in revenues declined 14 percent during the same period (Hillstom, K. and Hillstorm, L, 2011).

With this change merchants had to develop a new production of ERP software that was easier to install, more manageable, required less time, and a lower costs. Many of the new methods were more modular, which allowed the system to precede in smaller amount with less support from information technology professionals.

There are some advantages for small and medium size companies using Enterprise Resource Planning. Some companies well say that it does not provide all the benefits and not all the functions because of its presence online. For some small and medium companies it seems to be the best tools. The main advantage of using Enterprise Resource Planning it gives employees access to all the data from anywhere from any branch and this can lead to important savings. Another advantage is that customers can connect with the suppliers such as order request and communication can be well managed and easier.

Most business does not really have the knowledge as to how it is done. Monitoring inventory, products, orders and cash flow is normally easy only at the start. Once the business begins growing, the operations get more and more complex. For many business Enterprise Resource Planning software programs that are available. Enterprise Resource Planning is a management scheme that covers nearly all business areas, from accounting down to inventory management. Enterprise Resource Planning applications

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