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There are many different systems in a large company's
"back office," including planning, manufacturing,
distribution, shipping, and accounting. Enterprise
resource planning (ERP) is a system that integrates
all of these functions into a single system, designed
to serve the needs of each different department
within the enterprise. ERP is more of a methodology
than a piece of software, although it does incorporate
several software applications, brought together
under a single, integrated interface.
An ERP system spans multiple departments in a
corporation, and in some cases an ERP will also
transcend the corporate boundary to incorporate
systems of partners and suppliers as well, to
bring in additional functions like supply chain
management. Because it is so vast and all-encompassing,
the ERP system goes far beyond being just a simple
piece of software. Each implementation is unique
and is designed to correspond to the implementer's
various business processes. An ERP implementation
can cost millions of dollars to create, and may
take several years to complete.
Once implemented, the ERP system brings tremendous
advantages. Because all systems are joined together,
all departments can more easily share information.
The workflow that takes place between departments
can become much more automated, and ultimately,
customers are better served because the individual
using the customer-facing applications will have
access to every bit of information regarding each
relevant process. |
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