Enterprise Resource Planning (ERP)

The basic principle of ERP is centralized information collection. All data is stored in a single repository, which allows all users – from the CEO to the accounting department – to store, create and use the only up-to-date data of the enterprise. That is, if the company currently uses separate databases to monitor warehouse reporting, order processing, and accounting – using numerous unreliable spreadsheets – ERP combines these processes into a single and understandable flow of information.

That is, instead of individual employees in different departments creating their own spreadsheets and reports, ERP systems allow you to generate reports from a single centralized system. Information updated in one ERP module, such as CRM, HR, and finance, is sent to a central, shared database. The relevant information in the central database is then shared with other modules. For example, when sales orders are automatically fed into the finance system, the order management department can process them faster and more accurately, and the finance department can process financial information faster.

Businesses typically use a combination of different modules to manage activities and tasks, including the following:

• Distribution process management;
• Supply chain management;
• Service knowledge base;
• Customize pricing;
• Improve the accuracy of financial data;
• Facilitate better project planning;
• Automate the employee lifecycle;
• Standardize critical business procedures;
• Reduce redundant tasks;
• Assess business needs;
• Accounting and financial applications;
• Reduce acquisition costs;
• Human resource management and payroll