ERP = Enterprise Resource Planning

What is ERP?

What is this ERP all about? The hottest buzz in the market. Everyone is talking about big big names like SAP, People soft, Oracle Applications, Bann, JD Edwards, Ramco…etc. Where does all this fit in. Let’s get to the basics and get some of the answers.

Integration of ERP.

ERP Allows you to integrate all the Business Processes in one single Platform. Just imagine any organization you know. It has got many divisions; Sales, Purchasing, Distribution, Finance accounting, Warehousing, Human Resource, Planning etc. Now, everyone in here is using a different set of applications and provide you with different services. Where does the role of enterprise fit in lets forget about the Resource and Planning for time being.

ERP as an Example.

Now, this enterprise is providing you with it’s own set of services. what are they? lets put it into a simple way. Assume we are manufacturing a product. say a Pen. A customer is placing a order for pen. That’s when the sales division comes into picture, the sales division check with the warehousing if there exists a stock for a pen, if Yes they ship it and then the process goes on to the finance division for paymentand because the stock should be ready when ever a customer places an order , we need to manufacture these pens and keep the pens ready in stock. To know how much to manufacture we need some planning and to manage all these processes we need people… there comes the Human resources.

Okay, here we go, looks like we have integrated all the departments to do one common task… sell pen!

That’s were ERP comes into picture and there exists different ERP Vendors to handle all these processes from one desk and the product i work on is SAP and has the maximum market share, because SAP is the best and now want to know more about it’s relation to SAP, go here.

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