ERP is any software solution which has the capability to address the whole enterprise needs taking into account the process view of an organization to meet the organizational goals integrating tightly all functions of an enterprise. Its main objective is to provide seamless integration of all business processes and data of an enterprise. Hence, relevant, reliable and real-time information can be provided to all information users throughout the enterprise.

Speaking of integration, ERP integrates databases, applications, interfaces, business process procedures and tools. ERP uses a centralized database to store all data and information. You input information once and are directly store in the database. During processing, the information stored can be easily retrieved and displayed using other function(s) of the ERP system. There are a lots of applications and interfaces in an ERP software. Those applications enable the software to perform different system functions and interfaces.

In a manufacturing set-up, the different departments are manufacturing, sales, accounting, finance, treasury, research & development & purchasing. A lot of business processes and procedures are involve in each department. ERP can be used to integrate, syncronize all the business processes to achieve process effectiveness and efficiency. Hence, enabling the achievement and realization of the overall corporate goals and objectives.   

Embracing ERP entails a lot of changes in the way businesses are carried out and business people are accustomed to. There would be change in business processes, people, corporate environment, and activities. The business processes should be evaluated and streamlined if necessary, to optimize the use of ERP. Waste processes should be eliminated. The competent people should be assigned to relevant functions and roles.  

A lot of considerations and factors should be evaluated when deciding to use ERP. First, what ERP to use? There a lot of ERP software today. Most popular are the SAP and Oracle software. The ERP software should be able to cover all the functional aspects of the business, integrates all business functions and processes, the outsource partner has the capability to implement, and your budget and possible return on investment (ROI). The most important thing is, the support of the management. 

The company should decide whether to buy or develop (in-house) an ERP system. The above factors (but not limited to) should be considered. Using an ERP software involves huge amount of money. It’s considered as large investment. Proper planning, research, evaluation and decision making are very necessary.