ERP SYSTEMS

Enterprise Resource Planning Systems

Enterprise Resource Planning Systems

Introduction

The system class ERP (Enterprise Resource Planning - Enterprise Resource Planning) - it is a corporate information system to automate the planning, accounting, monitoring and analysis of all major business processes and meet business objectives across the enterprise (organization). ERP-system helps to integrate all departments and functions of the company in a single system, all departments are working with a single database and it is easier to communicate with each other all sorts of information (Smith et al, 2008).

Typically, ERP system includes various functional modules such as accounting and tax accounting, warehouse management, transportation, treasury, personnel records, customer relationship management. Different software modules allow a single ERP system to replace outdated disparate information systems, logistics management, finance, warehouse projects. All information is stored in a single database where it can be obtained at any time on request.

Implementation of ERP systems - is complex and lengthy process. The integration of ERP systems in business processes requires a serious change in the logic of the internal procedures of the company, business process reengineering as well as significant changes in the work of its employees. Due to the complexity of the project implementation time systems class ERP big enough (2-3 years). But the introduction of ERP class systems, you can:

Plan needs in materials and components, the timing and volume of deliveries to the plan of production;

Regulate the availability of products (surplus, deficit) and to reduce costs for its storage;

Regulate the production process in a timely manner in response to changes in demand;

Streamline business processes in the company by reducing material and time costs;

Control the supply and quality of customer service.

Positive aspects of ERP systems in the enterprise (the organization)

reductions in insurance reserves;

timely completion of the material and technical resources;

increase in turnover of working capital;

reduction in the number of illiquid stocks and unplanned purchases;

increasing production and efficiency

effective control of material flow;

improved pricing;

reduction of spending on the formation of financial statements

The transformations of work organization that accompany implementation of an integrated management system in a business vary one hand, according to business structure and modes existing organization of work and on the other hand, according to reorganization strategies pursued by management through the new tool. The change is as much the mark of the context that characteristics of the tool in place. If the organizational challenge posed by the implementation of an ERP is important in the case of SMEs with various departments working in a very compartmentalized and is bound for the first, to clearly identify its processes and to redefine according to the logic of this tool. It is less for a company multinational is in its umpteenth Business Process Reengineering and who's the computer system is already communicating (Benitez, 2006).

In the latter case, often it is more decisions strategic reorganization, made possible by the establishment of an ERP, which are revolutionizing the organization of work: the centralization of certain support functions at headquarters, for example. Middle managers often see their role change because of the ...