ERP Flashcards
What is ERP?
Enterprise Resource Planning, is a powerful software that helps businesses manage and integrate various operations. it allows diff departments work together using a common database.
What is the important?
With an ERP system, inventory levels are updated in real-time, and can instantly generate purchase orders when stock is low. Also ,it can improves the coordination between departments, reduces production delays & ensures timely product delivery.
Types of modules (5):
Finance modules
-It manages accounting, budgeting, and financial reporting to ensure accurate financial oversight. Additionally, it automates payroll processing and expense tracking, streamlining financial operations for efficiency.
-Cth, retail comp. uses the finance module to tracks daily sales & expenses to ensures financial report at the end of the month.
Types of modules (5):
Manufacturing & Logistics modules
-It assists in production planning, material management, and plant maintenance. Additionally, it plays a crucial role in coordinating warehouse management and supply chain operations.
-Cth, car manufacturer uses this module to schedule production, track inventory & coordinate with suppliers for timely delivery of raw materials.
Types of modules (5):
Sales & Marketing modules
-It manages customer relationships, sales forecasting, and marketing campaigns. Additionally, it helps businesses analyze customer behavior and develop more effective sales strategies.
-Cth, online retailer uses the sales module to track cust purchases, recommend products, & send targeted promotions based on shopping history.
Types of modules (5):
HR modules
-The HR module is responsible for managing employee records, payroll, recruitment, and training. For example, a multinational company can use this module to track employee performance, organize training programs, and automate salary payments efficiently.
Types of modules (5):
Supply Chain Management modules
-Ensure efficient material procurement, inventory management, and order fulfillment by streamlining processes and reducing delays. It help businesses optimize their supply chain by providing real-time tracking of shipments and monitoring warehouse activities for improved accuracy and productivity.
-Cth, e-commerce company integrates ERP with SCM to monitor inventory levels, predict demand & ensure timely product delivery.
ERP Benefits (5)
-Data integrates: which eliminates data silos by connecting all departments.
-Real time info: ensures up to fate for better decision making.
-Process efficiency: automates tasks, reducing errors & delays.
-Improved collaboration: enhances coordination between finance, sales & production.
-Better Cust service: provides real time order tracking & inventory visibility.
ERP Challenges (4)
-High initial costs: ERP software can be expensive, esp for the small businesses.
-Complex implementation: integrating business functions into one system requires time, training & careful planning.
-Data accuracy dependence: relies on accurate data entry, once errors in input can affect all connected departments.
-Employee resistance: some employees may struggle to adapt to the new systems due to loss productivity during the transition period.
Types of Supply Chain Management: (4)
Supply Chain Planning- Helps companies forecast demand & schedule production accordingly.
Supply Chain Execution- manages procurement, inventory & manufacturing processes.
Supply Chain Collaboration- connects suppliers & retailers to improve inventory planning.
Supply Chain Coordination- monitors logistics & delivery schedules.
Traditional vs ERP approach
- Departments work in isolation = all departments are interconnected
- Data must be entered multiple times = single database eliminates dulication
- Decision making is slow due to outdate info = real-time data enables quick decisions
- Poor visibility into inventory & production = accurate tracking of stock & manufacturing
