Enterprise resource management software provides a platform for the business for the management of its resources. This software allows the enterprise to manage access to its resources efficiently.
It allows the designated user of any enterprise to access the authorized parts of the resource management. ERM system is managed to control and keep track of what resources a user has accessed.
- Nowadays, for well-developed companies. ERP systems have become a must-have tool for resource planning.
- Also, it integrates all the processes of any business at a single platform for effective management and usability.
It is also known as that integrates all the major and minor processes of business at a single system. These processes typically include planning, production planning, and procurement, purchasing inventory, sales, marketing, accounting, human resources, finance and more.
Related Article: Human Resource Management
Enterprise Resource Management Software Fundamentals:
It is designed in a way to base on a common database. This ensures that the information must be normalized across the whole enterprise.
All these core systems are connected with business processes. These processes are driven by the workflows, all the connected systems and the users of the ERP system.
- The enterprise resource planning system can be considered as a link between the users, business processes, and technologies.
Let’s understand it with an example. A company that assembly smartphones use the ERP system for the procurement of parts and components required for the complete assembly from different suppliers.
The ERP software use starts from raising the purchase requisition and purchase order for the required items. All the data from the procurement until the payment is connected to the ERP system for uniform and clean flow.
Any components of this smartphone assembly are identified by
- Part code,
- Part name
- Preferred supplier,
Cost and other specifications preset by the technical team.
The role of enterprise resource planning software is in collection, organization, analyzation, and distribution of the processes update the information to every user as per the assigned responsibilities.
Enterprise resource management software feeds all the data into the correct general ledger of the company for proper allocation and tracking of the costs. Also, it is important for a company to set a standard nomenclature for coding the part names into the ERP system. Any duplication of part codes, wrong description or formatting, and incorrect spelling will disturb the tracking process.
Let’s suppose if smartphones are fed as android phones by the marketing department for sales, while accounts are calling the product as mobiles in ERP, and some other department is using the word smartphone.
However, in actual the thing is the same. But in the record, there will be no accounts data against the product name android phones. So, a standardized approach toward code opening should be followed.
Business Specific Enterprise Resource Tool
There are hundreds of enterprise resource management software available nowadays. Some are giant enough to deal best with any nature of business. While few are business-specific tools specifically developed to deal with all the activities of a business.
It’s really difficult to choose the best out of a long list of ERM and ERP software providers. Just like the resource capacity planner, this software helps the user. However, here we try out best to present a few of the world-renowned solutions for all business needs;
- Oracle eBusiness Suite
- Oracle NetSuite ERP
- Oracle ERP Cloud
- SAP ERP
- Sage Intacct
- Microsoft Dynamics 365
- Epicor ERP
- Business Cloud Essentials
ERP Software Features & Capabilities:
The application of ERP software is in all the processes of a business. Therefore, the capabilities of ERP systems include;
- Payroll Management
- Sales Management
- Supply Chain Management
- Product Lifecycle Management
- Inventory Management
- Procurement Management
- Risk Management
In conclusion; the enterprise resource management software manages all the processes of a business including sales, accounting, finances, procurement, manufacturing, and supply chain.It integrates all business functions as a single system. It’s a complete solution for all businesses needs to improve efficiency.