Enterprise resource planning is the integrated management of main business processes, often in real time and mediated by software and technology. At its core, ERP is an application that automates business processes and provides insights and internal controls, drawing on a central database.
Need for ERP:
An ERP system enables you to know exactly what stock you need for each job and when you need it. ERP software also allows you to automate many of your processes so efficiencies can be created across the entire production process. This means less duplication, better scheduling of resources and reduced downtime.
Other significant reasons for incorporating ERP in a business are:
- Investment Optimization
- Increase the Productivity
- Customer Satisfaction
- Intelligent Reports Management
- Boost up your Business Performance
Definition of ERP:
Material Requirement Planning:
Material planning is entirely dependent on inputs it receives from other system departments. If input information is not correct than output for material planning will also be incorrect. Other reasons for MRP becoming obsolete are:
- Heavy reliance on input data accuracy.
- Expensive to implement.
- Lack of flexibility in the production schedule.
- Tendency to hold more inventory than needed.
- Less capable than an overall ERP system.
Benefits of ERP:
- Enhanced Business Reporting: Better reporting tools with real-time information.
- Better customer service: Better access to customer information.
- Improved Inventory Costs
- Boosted Cash Flow
- Cost Savings
- Better Data & Cloud Security
- Business Process Improvements
- Supply Chain Management
OLAP (for online analytical processing) is software for performing multidimensional analysis at high speeds on large volumes of data from a data warehouse, data mart, or some other unified, centralized data store.
A data warehouse is a central repository of information that can be analyzed to make more informed decisions. Data flows into a data warehouse from transactional systems, relational databases, and other sources, typically on a regular cadence.
A data mart is a simple form of data warehouse focused on a single subject or line of business. With a data mart, teams can access data and gain insights faster, because they don't have to spend time searching within a more complex data warehouse or manually aggregating data from different sources.
Applications of ERP:
Enterprise Resource Planning software can be used to automate and simplify individual activities across a business or organization, such as accounting and procurement, project management, customer relationship management, risk management, compliance, and supply chain operations.