ERP or Enterprise resource planning is the method of integrating various functional systems of a large organization into a single system. ERP is a scheme that includes several software and hardware applications in the effort of incorporating the organizations different systems, such as planning, accounting, manufacturing, shipping, and distributionall integrated into one structure.
In the past, ERP systems were normally used by larger industrial types of companies. However, its purpose eventually have changed and become extremely comprehensive to making it even more useful to any type of organization. Companies prefer ERP over any other conventional method due to its capability of an holistic integration of systems across the various departments of organizations. ERP also serves as solution for a better project management and provides an automatic overture of latest technologies.
The unique thing about using ERP systems is its swift implementation, a basic reason why most companies use it. The sooner it is implemented in an organization the faster and better the benefits and results are achieved. Expected returns are even gained at shorter periods. It is therefore important for a company to first determine the most suitable ERP systems it can implement. Basically, an appropriate and well-implemented ERP systems approach helps by generating inclusive momentous competencies across the organizations departments, which results to an enhanced internal data and processes, an opportune business information, an improved client relationship, further gainful supply chain, and an eventual increased revenues.