What Does ERP Mean?
By definition, the acronym ERP stands for enterprise resource planning (ERP) which is a centralized and comprehensive system that integrates all resources, information and activity of a company. ERP software unites, standardizes and streamlines all business processes including finance, human resources, quality, manufacturing, inventory, sales and reporting. With a shared common database, real-time data visibility provides a single source of information for all company stakeholders.
Key functionality of an ERP
Developed as a complete business management system from beginning sales order entry through the manufacturing, scheduling and accounting process, an ERP solution centralizes the core business functions while also integrating solutions for:
- Material Requirements Planning (MRP) - efficient use of resources factoring in supply and demand
- Work Order Software - service and repair management system
- Warehouse Management System (WMS) - real-time, mobile inventory transactions
- Lot traceability - ability to track raw materials, intermediates and finished goods
- Kitting - ordering, selling and shipping of bundled products
- Distribution Requirements Planning (DRP) - inventory management throughout the supply chain and warehouse
- Field Service - automate scheduling, invoicing and reporting in the field
- Quality Control - testing, recording and compliance management
- Research & Development (R&D) - product development and revision history
- Customer Relationship Management (CRM) - manage contacts, sales and activities
- Electronic Data Interchange (EDI) - automate transactions to trading partners
- Point of Sale (POS) - mobile retail management system
- Direct Store Delivery (DSD) - mobile route sales and delivery platform
- Project Costing - budget and track costs to a specific job
- Reporting, Forecasting and Predictive Analytics - interactive dashboards with alerting capabilities
- Portals - accessible business information for customers and employees
What are the benefits of ERP?
When do I need ERP? 6 signs it's time.
Many growing companies struggle with standalone tools such as QuickBooks and disparate software systems and manual methods to manage their core business functions and data. Here are 5 signs you’re ready to explore the benefits of ERP automation.
Inaccurate inventory numbers are a pain point for many manufacturers, but they don’t have to be. ERP can streamline an operation, ensuring the material and production needs are met efficiently while keeping inventory carrying costs low and lag and lead time at a sustainable rate.
Poor accounting practices and duplicate data entry are tedious and time-consuming. An ERP solution utilizes a centralized database, allowing the accounting department to access the same information as sales, manufacturing, customer service and the executive level, without needing to import or export spreadsheets.
Inadequate reporting can lead to uninformed decision making. An ERP’s integrated business intelligence and reporting functionality can analyze and visualize data, generating standard and shared reports, critical for identifying batch yields, cost fluctuations or quality issues.
Ever-changing industry regulations are daunting to stay abreast and in compliance with, but they don’t have to consume all the bandwidth. ERP software ensures quality control by managing testing, recording and compliance with regulatory bodies through full traceability, accurate labeling, customer-specific testing, and Certificates of Analysis (CofA) generation.
Unfulfilled sales orders and shipping delays hinder customer satisfaction, with real-time visibility increased loyalty is possible. ERP software records and stores accurate, comprehensive customer data with immediate access throughout the sales and fulfillment process, helping to manage and nurture the relationship.
Disparate systems, missing functionality, and siloed locations and departments are stagnating your growth initiatives. A scalable ERP solution allows you to customize the software and functionality to meet your growing needs. Easily conjoin locations, add additional product lines and resources within one integrated solution.
What types of ERP deployment options are available?
Why choose industry-specific ERP?
An industry-specific ERP is designed with your particular needs in mind, offering a comprehensive and more cost-effective solution.
Focusing on your specific vertical offers the following advantages:
- Shorter implementation timeframe
- Simplified maintenance and support
- Ease of troubleshooting with industry support staff
- Minimal need for customization
- Quicker time to ROI
- Customer-centric focus
- Lower cost of ownership
- Implementation of industry best practices
- Industry-specific features and functionality inherent
An ERP Solution from Open Systems
With over four decades of experience offering adaptable solutions, Open Systems develops top ERP systems that are customizable and scalable to support large enterprises, yet affordable and flexible for small and mid-sized companies alike. We offer the versatility of multi-language, multi-currency, multi-company and multi-industry to focus on solutions that work for you. Backed by leading-edge Microsoft technologies, we develop, design, install and provide top of the line ERP support for our software systems!