ERP Wikipedia: ERP Explained

Doing Enterprise Resource Planning or ERP means integrating data and running the enterprises different departments applications under one system.  When a company decides to have their separate departments do this they are actually eliminating the old applications and placing a new one that will run not just one department but all thats included in the ERP system.

ERP is all exclusive and it covers the whole enterprise. All the departments can be a part of the whole ERP system if the company chooses to. ERP can include the manufacturing, warehousing, logistics, information technology, accounting, human resources, marketing and strategic management. However, the company can choose to include only some of its functions in its ERP too.

Implementing ERP can be quite complicated and it can also be expensive, but it has its advantages. For one thing, it could spell a standardized data among the different departments. They would have easier communication of data so the operations of each department is made easier and made more effective. For instance, if manufacturing and warehousing are in an ERP system then manufacturing can warn warehousing when they will need more space for the seasonal increase in production.  Orders can also be taken care of much easily from order acceptance to delivery this way.

When implemented correctly, the company will benefit from the smoother operations in the company. Communication is the key and ERP provides precisely this. They will also be able to operate cost effectively. In effect, the whole enterprise will be more efficient and they will be more productive because the ERP system.