What is ERP?

What is ERP (Enterprise Resource Planning)?

ERP can encompass the management of all business activities such as marketing, sales, production, logistics, quality management, inventory management, service, finance, HR, etc. But it's not necessary to include all business activities. ERP systems automate these activities using an integrated software application. Strictly seen, an ERP system refers to all components required to set up the system, like business processes, IT infrastructure, a common database and ERP software. Hence, ERP software is part of the ERP system. In practice, these terms are used interchangeably.

ERP systems are used to plan and manage all resources, like money, inventory, personnel and machines, in an organisation. The ERP software integrates all relevant data and processes of an organisation into a unified database. ERP systems are typically designed to cover all basic functions of an organisation, regardless of the organisation's business. Businesses, non-profit organisations, nongovernmental organisations, governments, and other large entities utilize ERP software. ERP systems are often incorrectly called back office systems implying that customers and suppliers are not directly involved. This is contrasted with front office systems like customer relationship management (CRM) systems that deal directly with the customers.

What is the difference between ERP and MRP

MRP stands for Material Requirements Planning and is mainly concerned with the planning and logistics of the materials required for manufacturing. This has evolved to MRP II (Manufacturing Resource Planning) which can be defined as a method for the effective planning of all resources of a manufacturing company. So in fact, MRP and MRP II are components of an ERP system.ERP

ERP software implementation

Because of the wide scope of processes within a business, ERP systems can be complex. The length of time to implement an ERP environment depends on the size of the business, the scope of the change and willingness of the organisation to take ownership for the ERP project. In many cases, implementation can be a bigger consideration than the actual software chosen when it comes down to the total cost of ownership for the business. Many midmarket and larger applications are sold exclusively through resellers, developers and consultants. Those organisations generally pass on a license fee to the software vendor and then charge the client for installation, customization and support services. Clients can normally count on paying roughly 50-200% of the price of the software in implementation and consulting fees. Other organizations sell to, consult with and support clients directly, eliminating the reseller.

What can SelectERP do for you?

SelectERP can support your exploration of the ERP market by providing extensive comparison of all leading UK ERP systems and MRP systems, based on an easy to use comparison tool which is available in the free info pack. 

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