If your company is getting an ERP (Enterprise Resource Planning), here’s a quick FAQ to better understand this solution and learn more how it will help your company do the business better.

What is ERP?

ERP is a software system designed to help companies manage the key components of their businesses. The systems are usually tied to a relational database that collects transactional business information and sorts it into data tables. This data automatically organized and allow users to quickly pull the desired information from system for faster analysis.

What are some of the most common modules found in an ERP system?

ERP systems are known for harboring a very wide range of modules. These modules support functionality from one end of the business to the other IT system. Every ERP vendor — Microsoft, SAP, Oracle, Infor, Epicor, and others — offers their own idea of a standard system, but there are some modules that appear in nearly every suite. These include modules for customer relationship management (CRM), human resources (HR) and human capital management (HCM), financial management and accounts payable, product lifecycle management (PLM), project management, order management, asset management, inventory management and, in systems that support manufacturing organizations, supply chain management (SCM) and warehouse management. Smaller ERP vendors usually offer more specialized systems that are targeted toward specific industry verticals.

NoOne of the most popular alternatives to in-house ERP is Software as a Service, or cloud ERP, where customers make use of on-demand technology that is hosted and maintained by an outside provider. The cloud model is particularly attractive to small and midsize companies that lack the IT funds and staff needed to keep up with a complex internal system. Cloud also offers more flexibility, as customers can often pick and choose which functionality they want, instead of paying for modules they don’t intend to use. While Two-tier ERP is also an alternative to a single in-house system. Under the two-tier model, a business will use one large ERP implementation that spans the entire company, while also using smaller ERP implementations to serve the needs of individual business units. This model is useful for companies with many separate plants, divisions or branches across located across the country or the globe. Two-tier ERP may be comprised of two in-house systems or, increasingly, one in-house system and one cloud ERP service.

How is ERP different from MRP?

Material Requirements Planning or MRP was singularly focused on the inventory side of manufacturing. The purpose of an MRP system was to keep track of what parts were needed to complete certain products, when the parts should be ordered to keep up with production and the amount of stock that always needed to be available in the warehouse. Material resource planning, or MRP II, was created to fill these information gaps. It was from this growing demand for more advanced business information that ERP was born

Is choosing an ERP system difficult?

ERP software selection doesn’t have to be difficult, but it is always an important decision that will have a major impact on the business. Companies should be sure to clearly define goals and requirements before beginning to explore vendor options. 

It’s critical to understand the importance of thorough ERP training before, during and after an implementation. If you’re looking for a partner that can provide you the Software to meet your business’ requirement, Hilsoft Inc is a team of specialists and software engineers who can deliver the best software product and service using their cutting-edge technologies and employing the best software methodologies.

Source: http://searcherp.techtarget.com/feature/FAQ-Back-to-basics-with-ERP-101

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