In concept, the more robust enterprise resource planning solutions (ERP) combine data and processes by using integrated software and hardware components and a unified database to capture information from all areas of an organization. Of course, the most immediate use of ERP solutions in business is found in applications for manufacturing (discrete and process). An ERP solution must be many things to many people within an organization, but at its base it should be both scalable and flexible, as well as transparent to end users even as it continuously works in the background.

ERP functions through the ordering of business processes that are themselves organized according to common business flows (i.e., lead-to-order, order-to-cash, purchase-to-pay, etc.). Such unified and consistently flowing business processes are produced through core applications that are usually built, in ERP, on a single platform to help consolidate information and reduce IT costs. Doing business today-particularly manufacturing business-without ERP is tough, and is at best much less efficient when viewed through the very focused lens of bottom-line metrics.

What does ERP do? It helps to organize the various factors found within emerging and present opportunities, and can:

  • Improve productivity
  • Enhance financial performance
  • Streamline processes and workflows
  • Improve reliability of tracking and forecasting
  • Lower production costs
  • Improve customer service (CRM)

To these ends, a good ERP solution offers a strategic link between business objectives and IT. As well, it can be justified to management in very measurable returns. A robust ERP solution is configurable at the business-process level so that as company objectives change, the ERP solution changes right along with them. Therefore, ERP implementation can be seen as way organizations build relationships; to perform effective, repeatable processes; to drive efficiency into every process; and to share information accurately and as needed. And, of course, to drive profits to greater success.

In short, top-tier ERP applications will directly link the specific attributes that inform the positive financial performance of the business. By connecting the application functionality to business-process improvements in all areas of the manufacturing operation (including finance, production, supply chain management, customer relationship management, data warehousing, and human resources), the entire organization benefits in terms of operational and actionable intelligence. In this regard, ERP is more than just business communication.

With the power of the comprehensive inclusion of business data, ERP becomes an organizing force for manufacturing, and ultimately provides efficiency solutions that are otherwise difficult to imagine. To the extent that ERP is a totalizing tool designed that easily integrates diverse data, the single source solution approach offers the best and most efficient method for organizing and interpreting such data.

Summary: A good ERP solution can offer a strategic link between business objectives and IT, and do it in such a way that drives profitability and productivity. ERP organizes real time data from all areas of the manufacturing operation. In doing so, it provides the capability of making informed decisions rapidly, and with information that is both timely and relevant. In turn, such decision-making capabilities resulting from ERP produce improved productivity, improved financial performance, lower production and administration costs, enhanced forecasting, and improved customer service.

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