Pre ERP Scenario

What is E.R.P ???

E.R.P is Enterprise resource solution. Automates many basic processes of the company.

Integrates internal and external management

information across an entire organization. Its purpose is to facilitate the flow of information.

Information integration.

Growth factors
To enable improved business performance. To provide real-time decision support. To eliminate limitations in legacy system. To take advantage of the untapped mid market . Flexibility Better analysis and planning capabilities

Why are E.R.P packages being used ?

E.R.P packages can handle entire range business functions necessary for companys operation. Targeted from small business to the largest functions Global adaption

Integration of ERP include Sales forecasting, which allows inventory optimization

Order tracking, from acceptance through fulfillment

Revenue tracking, from invoice through cash receipt Matching purchase orders (what was ordered), inventory receipts (what arrived), and costing (what the vendor invoiced)

Advantages of ERP
They eliminate the need to synchronize changes between multiple systems.

They enable standard product naming/coding.

They make realtime information available to management anywhere, any time to make proper decisions. They protect sensitive data by consolidating multiple security systems into a single structure.

Disadvantages of ERP
Customization is problematic. Reengineering business processes to fit the ERP system. ERP can cost more than less integrated or comprehensive solution. High switching costs increase vendor negotiating power vis a vis support, maintenance and upgrade expenses. Overcoming resistance to sharing sensitive information between departments can divert management attention. Integration of truly independent businesses can create unnecessary dependencies. Extensive training requirements take resources from daily operations.

Opportunity of ERP
Business Intelligence Customer Relationship Management. Financial Management. Human Capital Management. Manufacturing Operations. Supply Chain Management.

Business Intelligence
BI tools allow users to share and analyze the data that the ERP applications collect from across the enterprise from a unified repository. End result is more informed decision making by everyone from executives to line managers to human-resources professionals to accountants

Customer Relationship Management

It fulfill customers' orders, respond to customers' service needs, and often, create marketing campaigns to reach customers. Self-service tools for customers and an ecommerce storefront builder.

Financial Management
The financial-management applications include tools for creating and adhering to budgets, cash-flow management, expense management, risk management and tax management.

Human Capital Management

HCM module includes tools for humanresources management, performance management, payroll, and time and labor tracking. Administering benefits, managing compensation, dealing with salary taxes, recruiting new employees and planning workforce needs.

Manufacturing Operations
Industry-specific functionality PDM (Product Data Management), CRP (Capacity Requirements Planning), MRP (Materials Requirements Planning), forecasting, MPS (Master Production Scheduling), work-order management and shop-floor control.

Supply Chain Management

SCM improves the flow of materials through an organization's supply chain by managing planning, scheduling, procurement, and fulfillment for optimum service levels and maximum profitability.

Challenges of ERP
1. Maintaining good relationships with customer 2. Decision support 3. Quality & efficiency 4. Proper utilization of resources 5. Decrease cost