What is ERP Software?
ERP Software (Enterprise Resource Planning) is the tool which is used to Handle Organisation data and Processes. ERP is used to recording, Monitoring, and reporting processes, activities and data etc. Using an ERP facilitates the Quick and Accurate decision-making which is required for Industry Growth and Increased Profit. This blog will really help you if you want to make a career as an ERP Consultant or Business Analyst.
Why is ERP software needed?
ERP is a Software tool is used for recording, Monitoring and reporting the activity that takes place in an organization. There are a lot of Business Process which are essential to run the industry or organization. For example, If we take a Procurement Process (Buying a raw material from the supplier) which involves raising a PO, Printing PO, Sending PO to Supplier, Material receipt from a supplier, Booking a cost of goods received, Payment to Supplier.
So if we consider an organization which is bigger in size and there are lots of processes, material movement (Volume), and activities which are difficult to manage/record manually. In that case, we need a tool which will handle all the data, material movement, and activities. ERP Software is an application which is developed for the same reason.
Benefits using ERP :-
1) Huge data handling becomes easy.
2) Automation of Processes.
3) Having a history of the data/material movement.
4) Improved Data accuracy (than manual handling)
5) Improved decision-making ability as we can do better analysis.
6) Improved Transparency in data, processes, activities and Much More.
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What are the Business Processes carried out in Organisation?
Below is Business process list which most of the industries are using.
1 Human Resource Business Process (Required to Hire a People and it’s related processes like Payroll etc.)
2 Design Business Process (Design and Development of New Product as per market need)
3. Customer Relationship Management (CRM)Business Process (To get the new leads and convert them into customer )
4. Sales Business Process (Selling and Planning delivery as per customer need)
5. Planning Business Process (Ensures optimized resources on time availability like Material, Man,etc.)
6. Manufacturing Business Process (Ensure Raw material is converted into finished goods for selling)
7. Quality Management Business Process (Ensures product/Services are delivered as per customer specification)
8. Inventory Management Business Process (Ensures that Production is not suffered because of shortages and on another hand there is no inventory which is not required but adding a cost)
9. Service and Maintenance Business Process. (Ensures uptime of resources like the machine (Maintenance) and deals with the services that demanded by Customer like after sales service, installation, Repair within Warranty etc. )
10. Finance Business Process (Keeping a track of Assets and Liabilities. Additionally, Cost, Revenue, and Profit booking and analysis)
All above processes can be mapped, monitored, executed in ERP software.
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