Erp Essay

ERP MODULES

ERP modules are involved in managing the major functionalities of business activities such as purchasing, inventory control and accounting. There are a total of eight ERP modules which are implemented for any organisation as mentioned below:

1) Sales Order (SO)

2) Purchase Order (PO)

3) Finance and Accounting

4) Manufacturing Resource Planning

5) Customer Relationship Management

6) Human resources

7) Procurement

8) Marketing

Out of these, 5 modules which are commonly used are as explained below:

1) Purchase Order (PO):

It is the first step in the purchase process. It is an official purchase offer document which is given by the buyer to the seller which mentions the quantity,

Some of these can be listed as follows:

 Information integration: ERP have the ability to update information between business functions and components that are related. For example: a customer XYZ places an order. As soon as the order is placed it triggers production, planning, inventory and other processes. After all these processes get over, the details regarding product delivery date are given to the user. Thus, the user gets instantaneous information because of integration of information.

Reduction of lead time: The time taken to deliver an order minus the time at which order was placed is known as the lead time. Because of the efficient inventory management systems that anticipate demand ahead of the orders that are placed, lead time has decreased considerably.

They improve customer satisfaction by on-time delivery, shorter delivery times.

They reduce inventory costs as a result of planning and integration of all business processes.

They guarantee the security of the company’s information and database.

Improved supplier performance: Supplier management and vendor support tools help the company to maintain the flow of raw material delivery and also to continually check the quality of

Internal staff adequacy: for the implementation of erp in the company some internal staff must also be trained so that they can teach their colleagues and thus, resistance to outsiders training them and skepticism towards ERP will reduce.

Employee relocation and re-training: new ERP systems will require new job descriptions. Changes in these, need to be handled carefully by HR managers. Training of end-users of ERP must be sufficient.

Resistance to change: people have misconceptions about ERP that it will make people jobless.Due to this, there may be a lack of commitment of the employees. Thus awareness must be created as to how it will help the company. Communication with the employees must be effective.

Staffing: ERP requires skilled personnel and thus matching people’s skills to their jobs is very essential.

Process