Enterprise Resource Planning (ERP) is a business management software solution that enables organizations to use one system to manage business processes.
ERP is accounting and operations oriented and features one database as a master source of enterprise information. ERP for manufacturing is used to identify and plan the resource needs of the entire enterprise.
ERP provides one user interface for the entire organization to manage:
- Product planning
- Materials and parts purchasing
- Inventory management
- Distribution and logistics
- Production scheduling
- Manufacturing processes
- Capacity utilization
- Order management and tracking
- Customer relations/satisfaction
- Equipment and assets
ERP is an extension of manufacturing resource planning (MRP). It also can be referred to as enterprise requirement planning.
The manufacturing industry is highly dynamic and competitive in nature which makes it imperative for such businesses to have an integrated solution that can enhance efficiency, diminish costs, increase sales and profitability but most importantly, enable the organization to make accurate, informed and strategic decisions.
Benefits of ERP for manufacturing industry are: –
- Automates and Streamlines Business Processes with greater Adaptability
- Respond to Market Conditions Quicker
- Strategic Decision Making
- Reduce Costs
- Enhance Customer Satisfaction
ERP for manufacturing industry integrates all aspects of business (resources, operations, monitoring, reporting, sales, accounting and finance, etc.) and empowers businesses to run.