ERP (enterprise resource planning) - enterprise resource planning
ERP – enterprise resource planning
ERP (enterprise resource planning, enterprise resource planning) — the organizational strategy of integration of production and operations, human resource management, financial management and asset management, focused on continuous balancing and optimization of resources through specialized integrated enterprise application package software, which provides a common data model and processes for all areas of activities.
ERP-system — specific software package that implements the ERP strategy.
Strategy ERP is the concept of MRP II and covers almost all areas of enterprise activity, but the ERP system does not replace the CRM system, controlling foreign relations, and PLM system that controls intellectual property.
The characteristic features of ERP-strategy:
- The use of a single transaction system for the vast majority of transactions and business processes of the enterprise. All operations are combined into a single database for processing and receiving real-time balanced plans.
- Replicability: the ability of the use of the same software package for different organizations (possibly with different settings and extensions).
- Support in a single system a variety of currency languages.
- Support for multiple legal entities, multiple businesses, a number of accounting policies, and various taxation schemes in a single system; this is necessary for its application in corporations, including transnational.
A software package that implements a strategy for ERP is usually performed in the form of a set of modules, the list of which can vary depending on the size and characteristics of enterprises which implemented the ERP system. The standard set looks like this:
- Finance and accounting.
- Personnel management.
- The customer relationship management (CRM).
- The supply chain management (SCM).
These modules can be implemented in stages. You can select only those necessary for the enterprise at this stage of its development. You can even create solutions based on several ERP systems, choosing from each module, the best in its class.
Usually all modules are divided into 3 groups: Finance, personnel, operations. The main components of an ERP system are the financial modules, primarily General Ledger.