Enterprise Resource Planning aids in optimizing the resources and manage the business process to fulfill the goals according to the requirements of the customer. Many medium scale companies are turning towards implementing ERP system but the question is when to consider ERP? This can be answered keeping certain points in mind. Some small scale companies may not actually require ERP system, as it depends on the business and the complexity of the business. One does not have to implement it just because the other companies in the market are doing so. Enterprise Resource Planning ensures a smooth flow of information between the different departments of the organization and it changes the working of the organization. So, to be ready for the implementation, one has to carefully study few points and know when to consider ERP.

To consider ERP, one has to study some factors like the size of the business. The communication flow between the different departments and coordination are also important factors. If this is a complex process, ERP may smooth the process and make it more efficient. Availability of relevant data is required for quick and accurate decision making. If the availability of data is a problem, one should consider ERP implementation. ERP aids in increasing the production cycles by providing accurate data for decisions and meeting the market demand as per schedule. ERP implementation has various benefits and advantages. It provides many features which makes the business process easier and more efficient. These points have to be taken into consideration while deciding when to consider ERP for your company. The decision will be dictated primarily by the requirements of your company and it varies from one company to another.

ERP ensures readily available real time data with easy access for the management to take proper decisions. When tracking of customer's orders is time consuming, it delays the delivery of the product and can spoil the relationship with the customer. This may be a situation to consider ERP implementation as ERP makes tracking of the orders and related information more easily accessible and more efficient. If your business is growing and has many branches, it is advisable to opt for ERP which will offer easy maintenance in this situation. A company trying to gain ground in different locations with various branches should consider ERP. Also when there is a lot of data management to do it becomes difficult to segregate the data. The automated system provided by implementation of ERP can make the data management easy and organized.

Companies using the old way do not have an integrated way of working and the departments work independently which can be taken care of by implementing an ERP system. Enterprise Resource Planning system allows the organization to function smoothly and enhances the productivity. The companies suffering from issues of delays and human errors can consider ERP for improvement. With the changing market trends and to keep up with the competition, many companies are adopting ERP. This helps the company to keep with the latest technologies and increase the market potential of the company.

ERP Solution Information technology has not only transformed the way we live in modern society, but also the way in which we do business. Enterprise Resource Planning, often referred to as ERP, is becoming one of the most commonly used software systems in several industries and organizations. The object of this article is to provide pertinent highlights about exactly what ERP is. The definition of Enterprise Resource Planning refers to not only software but also the business strategies employed as part of the implementation of ERP systems. This implementation makes use of various software applications in order to improve the performances of organizations in resource planning, control of operations, and control of management.

ERP software contains several software modules that work to integrate vital activities across operating departments. An ERP System not only includes the ERP Software but also the business processes and hardware that make this system work. These systems are more than the sums of their parts as the many components work together in order to achieve one common objective-to provide an organization with a greatly improved and streamlined business process. History of ERP has been well over 20 years in the making. This system is the result of the trial, error, and growth of Manufacturing Requirements Planning (MRP) during the 80's. MRP was the evolution of Inventory Management and Control, which was conceived during the 1960's. ERP has grown beyond the coordination of manufacturing processes into the integration of back end processing on very large scales. From its origins as a legacy implementation ERP has morphed into a new and improved client-server architecture.

Benefits of ERP. This software attempts to bring all aspects of the business into one single enterprise-wide database or information system. This allows instantaneous information and communications to be shared between multiple departments. The primary benefit of this is a greatly improved efficiency in business operations. Implementing this system will not only help communications between departments but in day-to-day management functions as well. ERP is an ambitious design that also supports the resource planning part of corporate planning as this is often the weakest link in strategic planning as the result of the inadequate integration of ERP software with Decision Support Systems.

ERP Failures. It would be quite rude to conclude without at least mentioning the fact that failures in this system are occasionally reported in one of the four components of an ERP System. These systems are: ERP software, Business processes supported by the ERP System, Users of the ERP Systems, and the hardware and/or operating systems upon which the ERP applications are actually run. The failure of one or more of these components has the potential to cause the entire ERP project to fail.

Have you ever wondered how much tighter you can make your material costs? If you have, the next question to yourself was no doubt, "How can I do it?". Once a sale is generated, procurement processes get added into whole list of things to do to complete the order on time and on budget. To this end, enterprise resource planning software (ERP) helps manufacturers streamline their purchasing and procurement processes. Such automated purchasing is designed to interface with the efficiencies built into other automation introduced to the shop floor for the past half century.

By streamlining purchasing via automated ERP applications, a company can take advantage of the nuances that occur in the procurement process. For example, how convenient, and profitable, would it be to have your entire supply chain at the fingertips of your purchasing manager? With an automated purchasing system as connected part of your whole production system, real-time information regarding raw materials is tied into a single-point presentation and loaded with automated triggers.

When production data is input by operators as they move through jobs, material needs become transmitted as a real-time function. This made particularly efficient through the use of graphical user interface terminals out on the shop floor whereby touch-screen data collection is immediately transmitted to a central system. In short, the automated purchase requisition demand released from the shop floor (or office administration) to the purchasing manager consolidates procurement by product, service, and vendor to optimize enterprise expenditure and significantly reduce errors caused by manual (handwritten) requisition production.

When considering what an ERP software system can do for you (or, just how ERP is your current system), automated purchasing is of absolute importance-it should tie into purchase orders, measuring current and pending orders against the history of all purchases stored as data within the system. In general, to gain more profits through costing efficiency, a streamlined and automated purchasing department will provide much more rapid and consistent improvements.

Think of it this way: What used to be a process commonly marred by numerous errors through the manual requisitions procedure, is now a practically error-free application in the automated materials management of ERP systems software.

An automated purchasing system within a total ERP approach offers the modern manufacturer the ability to keep tighter controls on the costs of material. It saves valuable time-time to process, time to research, and time to correct the errors caused in manual requisition efforts. The result is effective and significant cost savings for the company.

ERP provides cross-functional, enterprise wide integrated system which has deep functionality for core business processes and store data at one place which is accessible by all the modules for retrieval and storage. It also provides analysis tool to convert the data into more meaningful and helpful information to help the management in making timely decisions. It can automate various processes spread across the whole organization which are repetitive and interactive hence reducing the cost by saving valuable man hours and also reducing the chances of wrong entries. Apart from these there are numerous other features which are accounted as advantages of ERP and make it an efficient tool for running businesses. But all is not rosy with ERP, there are certain disadvantages associated with it which demand proper attention and detailed analysis to find ways of resolving them before deciding to go for ERP solution.

The biggest disadvantage associated with ERP is its tedious, long, time consuming, expensive implementation. Even if cost of purchasing the software is ignored the implementation process in itself can take months and consume huge sum of money if done properly. However one may think that a company shall be having brains to calculate the cost and make arrangements well before they actually begin the process to avoid cash crunch in the middle of the implementation cycle but even the most professionally run companies and small enterprises were not able to implement the ERP project within the budgeted amount ever. On top of it, to throw the whole effort in cold waters all a company needs to do is to make just one mistake out of the thousands to jeopardize the whole project. Such a scenario raises a serious question mark on the relevance of going for ERP implementation, as the kind of money and time wasted in the failed ERP implementation can shake the financial standing of any company.

ERP has two sides, one touch each and every employee of the company and another is related to technological complexities. Both need to work in a way that they compliment each other perfectly to make the system run at its best. To deal with the employees is a delicate issue, it is not only time consuming but requires lot of patience and effective change management, and staff not handled in accordance with the culture of the company can create dissatisfaction which can lead to failure of the project.

Even after successful completion of this process the valuable data which now comes at the disposal of so many people raises serious security issues. Data redundancy or corruption, server failure, third party intrusions, occurring either due to lack of proper technology or technological failures, can incur huge losses to the company within no time and at any time. And during implementation employees are diverted from their actual responsibilities which can painfully slow down the growth of the company.

It has been noted that sometimes companies lose their competitive edge after implementing ERP as ERP pushes processes to match industry standards and in this effort wipe off the flexibility which can bring down the quality of the final product or service of the company. This rigidity can also bring down employee comfort level and make them dissatisfied. There can be many more disadvantages of ERP but fortunately all can be prevented and minimized if proper steps are taken before beginning the process.
Enterprise Resource Planning acts just like the central process of your organization and integrate all functions and departments within a company in an organized way. The potential to provide accurate and same updated information in different situations is what makes the software so precious for enterprises. Before the arrival of ERP software, employees had to enter and re-enter data into the system. These manual tasks were prone to errors and sometimes also resulted in delays. When compared to this, ERP system works in a faster way by itself entering the orders and checking the goods inside an inventory.

The key aspect of ERP is the fact that business managers can keep a watch on where money is being spent and what are the outcomes of those expenses. Such information could prove valuable for anyone who is leading a business. ERP does not only deal with the current requirements, but it also offers opportunities for refinement and further improvement. It works as a clear communication channel linking departments of company with suppliers and customers. Modern ERP softwares are totally customized covering everything required everything for running organization whether it is small, medium or multinational.

Significant benefits of ERP: Improved level of visibility: As ERP are centralized in nature, it becomes easier for organizations to track inventory levels on regular basis, comprising inventory in future consignments and transit. Decreased operating costs: The greatest benefits of ERP are the minimized operating costs like as low marketing costs, production costs, control costs etc. ERP also gives you the options for value-added tasks and cost deduction.

Improved compliance: ERPs also helps the organizations in enforcing compliance. And, thus it can be considered very useful. Standardized Business Process: Lots of ERP developers design products which can be used by companies for standardizing their different processes. The charm of ERP lies on the fact that it allows different departments to see same data and also lets them update required information. Everyone inside the organization sees same screen and can access to the same database. Order processes are done so quickly and customers receive their orders fast and without any errors. It covers all functional areas like as sales and distribution, inventory, manufacturing, human resources, payables etc. With a sound implementation of ERP, it becomes easier for the management to have an isolated view of inventory and sales.

But, don't mistake ERP to be a magic wand as it demands huge amount of support, coordination and planning for harvesting promised benefits. One of the prime reasons of failure of businesses to get maximum productivity is absence of relevant information. ERP Software Company gives all necessary information to the business managers instilling them information to change and enhance business performance. It is very helpful as one can track orders at any time by simply logging on. The invaluable benefits of well-implemented ERP outweigh the flaws of ERP implementation. However, it should be kept in mind that installing ERP is not the end point and it is necessary for the companies to keep on refining business processes for achieving excellence.