package can streamline and automate an unlimited number of important
functions such as accounts payable, accounts receivable, activity
management, benefits administration, and billing, invoicing and cost
tracking (for project-based businesses). With ERP, companies can
also improve cash management, while manufacturing firms can practice
more effective capacity planning and cost containment.
Additionally, many ERP packages on the market today provide
robust and comprehensive business intelligence and decision support
capabilities, leveraging a data warehouse or operational data store
to make centralized, timely business information readily available
to all those who need it.
There are variety of ERP modules for businesses to choose from,
including engineering, finance (which includes powerful forecasting
and general ledger functionality), and human resources/human capital
management. Each of these ERP components is designed to improve the
way these vital back office departments operate, collaborate, and
Manufacturing was the very first industry to benefit from the use
of ERP applications, implementing the world's first ERP systems more
than forty years ago. For the past few decades, these companies have
been utilizing ERP to improve production processes and reduce
related costs with enhanced inventory management, intellectual
property tracking, and input/output control, which enables more
effective implementation of popular and proven best practices such
as just-in-time manufacturing models and kaizen techniques, which
are the Japanese processes of continuous improvement using
problem-solving and analysis. Companies can also optimize labour
utilization, eliminate lag times in production schedules, and
improve the effectiveness of materials management through the use of
ERP manufacturing applications.
At the core of many of today's most popular ERP applications lies
powerful and complete financial management, which allows accounting
staff members to more effectively track net cash flow, accelerate
and manage order to cash cycles, and better negotiate and execute
An ERP system can also deliver significant improvements in other
areas, enhancing many non-financial processes such as payroll,
quality control, resource allocation and scheduling for project
management teams, supplier relationship management for purchasing
and procurement departments, and training and time and attendance
tracking for human resources groups.
An ERP system also enables companies to maximize the utilization
of both human and financial resources, better track vendor managed
inventory and other off-site or remote stock, and significantly
improve workflow management by better planning, mapping, and
executing key processes across the business.
With ERP companies can achieve and maintain a solid competitive
edge, reaching the zenith of productivity and cost-efficiency.
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