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We will learn about the basics of the bench starting with an introduction to ERP. So first we will know the basic definition of ERP. We will also learn about the specific business process model that each organization follows before the advent of ERP software. Along with this, we will take some significant impact from specific business process models so that we just get started.
- ERP is for enterprise resource planning. With ERP software, you can control the entire organization of different departments.
- In addition, the use of this special package makes it possible to track and manage real-time information from different departments. It can manage sales generation, financial accounting and human resources.
ERP Software Provider
So there are some main vendors of ERP, one of them is SAP. Many other vendors also like Bond JD Edwards, Oracle, PeopleSoft.
- PeopleSoft is basically used for small-scale industries and is specialized in HR modules.
- Oracle is specifically for finance.
- SAP handles many modules such as SD sales in distribution. Then the production plan is there which is material management, so are many others.
Problem without ERP
Now with an example, I will try to understand you specific business process model. Suppose there is a customer who wants to buy a particular product then what does he do? He contacts the sales department to buy that particular product, then the sales department goes on the list. And then the inventory department says that a particular product is out of stock. So it is going into inventory and returning it to the sales department for a special product that is out of stock !!
- It goes to the production plan for the production of that particular product. So he needs some raw material to produce that particular product. This production planning department will again go to the inventory department to find out if there is a raw material or not.
- In this case, suppose there is no raw material either. This will update production planning that there is no raw material.
- Then what does the Production Planning Department do? It purchases raw materials from vendors. So it cuts and now it gets the raw material. After which it drives the execution flow of the raw material store.
Now, the store execution floor produces that material and returns to the sales department. The sales department gives the customer a special product that should generate some revenue. Now the employee will have to report that revenue to the Finance Department. Furthermore, it may incur some additional cost to purchase that particular product. So that the Finance Department is also updated. Finally, all these departments will have to report back to the Human Resources Department for resource related issues.
Solutions with ERP software
So this is how a particular typical business process model is being followed. Now we see some major things about projections from this business module. We see that a typical enterprise has different business units. We noticed that there were sales and distribution modules. In addition, there was production planning. Similarly, an organization consists of several business units and all your organizations communicate with each other. For the success of any organization, it is necessary that effective communication must take place. Not only within the organization, but also with outsourced and customers of third party vendors. So in this, we learn about the specific business process model that any organization follows. ERP software makes it easy to maintain your business.