Concept explainers
Explanation of Solution
ERP:
It stands for Enterprise Resource Planning. This empowers the business processes with the target to becoming highly efficient and highly profitable. It is an integrated process that unites business operations into a distinct, reliable and computing platform.
Capability of the ERP product:
In order to consider a product as the true ERP product, it must contain an application that integrates supply chain, manufacturing, CRM, human resources, and accounting.
Supply chain: It includes activities like sales ordering process, managing inventory, supplier management, etc.
Manufacturing: It includes, planning, scheduling, controlling, etc.
CRM: It contains activities like customer support, marketing, and its related activities.
Human resources: It contains activities like maintaining time and attendance, payroll, and its related activities.
Accounting: It includes cash management, general ledger, etc.
Components of ERP system:
ERP system contains five components. They are:
- Programs
Database - Procedures
- Training
- Consulting
Programs:
- The programs are configured in such a way that it meets all the requirements that an organization needs.
- It is also designed in a way that the developers can change the configuration whenever required.
- It is not designed to meet every customer needs as it is so complicated.
Database:
- It is important to consider a
program before implementing ERP because, it contains numerous databases that stores and manages the organization’s data...
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