Enterprise Resource Planning Software Demystified

By: Lotfi Al-Sarori

Enterprise Resource Planning (ERP) software has been in use for over 20 years. In fact, its predecessor, MRP (Material Requirements Planning) software, used in manufacturing and production planning, has been around since the 1960’s. Many software companies around the globe today offer a plethora of ERP software systems that have a wide range of capabilities and features and for various purposes and industries.

However, in order to understand the importance of ERP, let us first get to know what ERP systems are.

ERP Defined

Enterprise Resource Planning (ERP) software suites comprise software systems for the planning and management of the whole organization. Systems in the ERP suite are used to operate and interconnect the various functional areas of the company such as finance, human resources, and supply chain. Depending on the type of business, it can also include software for service and maintenance, transportation, fleet management, or manufacturing.

A system of systems

An ERP suite includes a number of systems that are integrated, share relevant information, and operate in real-time (or near real-time). These systems have:

• One common datastore (i.e. database)
• Central user administration 
• Similar user interface for a consistent User eXperience (UX). 

An ERP suite typically includes software systems for managing:

Finance & Accounting

At the core of every ERP is a Financial Management System to optimize the administration of all finance and accounting operations. It enables companies to track every dime and penny, plan and monitor budgets as well as manage customer and vendor accounts, cash flows, assets, cost centers and more.

Human Resources

An HRM system enables HR departments and companies to efficiently manage their human resources. From recruitment and onboarding to payroll and talent management, they can administer business processes related to their most valuable assets, your employees.

Supply Chain

Running a product-based business requires having an efficient system for handling all logistics and supply chain operations. From procurement and inventory processing to sales, and POS transactions, supply chain management is an integral part of any product-based company today.

Projects 

Whether to create a design for a new product, launch a marketing campaign, or perform any other type of a timed undertaking, projects will always exist in the enterprise. Effective project management is an essential part of every organization and so is having a system for managing all relevant processes and data.

Production

Every manufacturing organization understands the value of having a manufacturing system. From product definition item requisition to delivery and filling, production management facilitates and expedites manufacturing operations and maximizes results.

Vehicle Fleets

Managing all aspects of the company’s vehicles such as recording and tracking vehicles, their movements, and all relevant details is the way to optimize fleet operations. This includes tasks related to vehicle assignment, monitoring, controlling, maintenance as well as driver assignment and administration using a Fleet Management System.

It is all about integration

The integration of these different software systems and modules is the key. It facilitates the flow of information among the different areas within the organization. This ensures data consistency and operational cohesion for optimal results.

Valuable Additions

Document Management

Every operating organization deals with some sort of documents. Today, these are mostly electronic files such as Microsoft^® Word or Excel^® documents or in some cases paper-based documents. A Document Management System enables you to archive and process all types of files and having such a system be integrated with your ERP suite is very valuable.

Workflow

Workflow or Business Process Management systems empower companies to design and implement their own customized processes based on their specific business requirements. This gives them the flexibility to add any type of business flow and integrate it into their daily work operations smoothly.

Dynamic Reporting

To run an effective business, companies need to measure progress. Dynamic reporting systems give organizations the power to design their own customized reports based on business needs. Using them, they can generate and share reports in various formats such as Microsoft^® Word, Excel^®, or Adobe PDF. Dashboards and charts are also important graphical data representations for informative easy-to-view reporting.

ESKADENIA offers a full ERP software suite that consists of systems for finance, HRM, SCM, manufacturing, fleet management and more. For more details, check out ESKA Business Manager.