ERP systems are designed to manage all financial and economic activities of the enterprise. They are used to promptly provide the management of the enterprise. They use the information necessary for making management decisions. As well as they create an infrastructure for the electronic exchange of enterprise data with suppliers and consumers. ERP systems allow using one integrated program instead of several disparate ones. A single system can manage the processing, logistics, distribution, inventory, shipping, invoicing and accounting.
The information access control system implemented in ERP is designed. It’s for both external threats and internal. Implemented in conjunction with quality control systems and customer relationship support, different types of erp software are aimed at maximizing the satisfaction of companies’ needs. They are used for business management tools.
The following main functional blocks are implemented in typed ERP systems:
- Sales and production planning. The result of the block is the development of a production plan for the main types of products.
- Demand management. The block is designed to predict future demand for products. It determines the volume of orders that can be offered to the client at a specific point in time. It determines the demand of distributors. It demands within the enterprise, etc.
- Aggregated capacity planning. Used to concretize production plans. It determines the degree of their feasibility.
- Basic production plan (production schedule). Products are defined in final units (products) with production times and quantities.
- Material requirements planning. The types of material resources (prefabricated units, finished units, purchased products, raw materials, semi-finished products, etc.). And there are specific delivery times for the fulfillment of the plan are determined.
- Product specification. Determines the composition of the final product. It’s applied for the material resources required for its manufacture, etc. The specification is the link between the main production plan and the plan for material requirements.
- Planning capacity requirements. At this stage of planning, production capacity is determined in more detail than at the previous levels.
- Routing / work centers. With the help of this block, both the production capacities of various levels and the routes. According to them the products are manufactured are concretized.
- Checking and adjusting shop capacity plans.
- Management of purchases, stocks, sales.
- Financial management (general ledger maintenance, settlements with debtors and creditors, fixed assets accounting, cash management, financial planning, etc.).
- Cost management (accounting for all costs of the enterprise and calculating the cost of finished products or services).
- Project / program management.
- Personnel Management.
In addition, for ERP systems software development, it is almost mandatory to have the ability to electronically exchange data with other applications. As well as to simulate a number of situations related primarily to planning and forecasting.
When choosing an ERP system, you need to understand that automation for the sake of automation does not make sense. It should be clearly understood that the best ERP system in the world will not be able to solve all the problems of the enterprise.
Any ERP system is primarily a tool for improving efficiency. It’s used for the quality of enterprise management. It makes the right strategic and tactical decisions. They are based on the automated processing of relevant and reliable information. At the same time, an ERP system is not only a toolkit for a business. But also there is a technology for doing it.
The management of the enterprise should be primarily interested in choosing the right ERP system. An ERP system implementation project should be viewed by the company’s management as a strategic investment.
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