ERP System - Enterprise Resource Planning

Erp Systems are information technologies which help organizations manage their activities. These systems help the organization receive reliable updated, real time information on three of the main divisions: HR, Funds and Logistics. Implementing an ERP system in the organization will bring to a quick change of that oranization without the need for Organization Consultants.

ERP systems structure:

• Central DataBase
• Finance and bookkeeping
• Reports module
• Sales and Shipments
• Production plan and management
• Inventory and purchasing management
• HR - Human Resource Management
• Customer Service Management (See also CRM)

How do ERP systems work?

1. Receive an order from a client.
2. The order is being forwarded to planning where materials are being ordered and manufacturing job orders are given.
3. merchandise is received - Inventory Booking and suppliers payment are made.
4. Manufacture Products.
5. Finished products are waiting in warehouse to be delivered to the customer.
6. Delivere the products to the customer.
7. Receive payment from the customer.

ERP systems advantage and disadvantage:

ERP systems have few disadvantages - they are complex, expensive, implementation takes time a involves risks, the system has to be constantly updated and the organization should have a deep knowledge and understanding of the system. Despite all the above, this system will support the organiztion processes, allow manpower reduction reduce unnecessary inventory levels, ensure making deadlines, avoid regulation bypassing, create a ordered working processes and supply reliable data online. This system was designed to help and make the activites of the organization efficient, shorten processing time and supply real time information about the company's activity. Another advantage is sharing information between different units of the organization according to every unit permissions.

A clear vision of the management and emplyees, clear goals, guideness, understanding and efforts from all the working function of an organization will maximize the benefits and profits from the system and therefore optimization of the organization's resource.