Today we will begin with very first basic question.
What is ERP?
ERP definition is Enterprise Resource Planning. In simple terms ERP helps to streamline processes in your company’s department like Production process, Inventory management process etc. And most importantly, the data updated by one department can be viewed by other department. So it will connect your departments like Production Department will able to see inventory updated by Store Department. It will help Production Team to plan their production and can ask Procure department to order/procure raw material in advance. This will save lot of time, energy and most important money.
Main advantage of ERP is you do not need to reconcile data. Data reconciliation is automatic and error proof.
Ofcourse all data will not be viewed by other departments. There is access control by which company’s management will decide who can view what.
Some people confuse ERP with accounting system. Having a accounting system in your company does not mean who have ERP in your company. Accounting or finance is just one part of ERP. Typical ERP has following modules along with accounting system.
1. Inventory Module
2. Purchase Module
3. Production Module
4. Finance Module
5. Order Management Module
6. Invoicing Module
7. Admin and HR
Now, I think too much at one time may be confusing. I will explain more about ERP in my next article.