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An ERP is a true ambition that attempts to integrate all departments and functions across a company onto a single computer system that can serve all those different departments for needs
An ERP is a tall order, building a single software program that serves the needs of people in finance as well as it does the people in human resources and in the warehouse.
“Integration” is the key word for ERP implementation.
ERP combines all departments together into a single, integrated software program that runs off a single database so that the various departments can more easily share the information and communicate with each other.
For example, when a customer places an order, initially the order begins with a paper-based journey from in-basket to in-basket within the company, often being keyed and re-keyed into different departments.
All that lounging around in in-baskets causes delay and lost order, and all the keying into different computer system invites error.
Meanwhile, no one in the company truly knows what is the status of the order at any given point because there is no way for the finance department to get into the warehouse's computer system to see whether the item has been dispatched.
ERP vanquishes the old standalone computer systems in finance, HR, manufacturing and warehouse, & replaces them with a single unified software program divided into software modules that roughly approximate the old standalone system.
Now the software is linked together so that someone in finance can look into the warehouse software to see if an order has been dispatched.
ERP's best hope for demonstrating value is as a sort of battering ram for improving the way your company takes a customer order and processes it into an invoice and revenue—otherwise known as the order fulfillment process.
That is why ERP is often referred to as back-office software. Rather, ERP takes a customer order and provides a software road map for automating the different steps along the path to fulfilling it.
When a customer service representative enters a customer order into an ERP system, he has all the information necessary to complete the order (the customer's credit rating and order history from the finance module, the company's inventory levels from the warehouse module and the shipping dock's trucking schedule from the logistics module, for example).
People in different departments can see the same information and can update it. When one department finishes with the order it is automatically routed via the ERP system to the next department.
To find out where the order is at any point, you need only log in to the ERP system and track it down. ERP can apply that same magic to the other major business processes, such as employee benefits or financial reporting.
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