What does ERP stand for? How does it work?
The term ERP stands for Enterprise Resource Planning. An ERP software system is considered management software and is used to collect, store and interpret data collected from various business activities.
It tracks resources such as cash, production capacity and raw materials. It further tracks current ongoing of the business such as current orders, purchase orders and employee payroll. All the data collected and interpreted is available for use and view of any department.
ERP software is an integrated system that holds an updated view of the core process while facilitating error free transactions and production processes enhancing the efficiency of the shop floor.
There are a few reasons an ERP system could be useful for your business, some areas of improvement could include:
- Finance: ERP offers an overview of all financial transactions and orders.
- Human Resources: Tracks payroll and also gives an up to date view of employee performance making it easier to locate a forming issue.
- Manufacturing: Automates several daily processes, streamlining an efficient shop floor.
- Supply chain: Save time and money by automating your inventory tracking and manage supplies.