What is an ERP system, how is it structured and why is it needed in business?

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monira444
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Joined: Sat Dec 28, 2024 4:38 am

What is an ERP system, how is it structured and why is it needed in business?

Post by monira444 »

Entrepreneurs who are not familiar with such IT solutions want to understand why an ERP system is needed and how it can help them solve management problems.

ERP system stands for Enterprise Resource Planning, that is, the abbreviation means that it is an enterprise resource planning system. This is important because the word "system" indicates that this is not just a strategic approach, but a tool for implementing management tasks. That is, it is a software package whose task is to store information and form links between data received from various departments - the sales department, accounting, HR, production department, etc.

These systems include several modules united by a common malaysia mobile database database, which contains all the documents. Different developers can arrange this software environment differently. But usually the same modules are used everywhere:

1. Finance. The module is designed to conduct financial analysis, assess the current situation, generate reports, control payments and debts.
2. Personnel management. The HR department works with this module. It performs an information function (it stores all data on employees, including information on skills), helps to maintain personnel records, plan advanced training, etc.
3. Purchases. The supply department works with this module. It helps to plan purchases, create contracts, analyze the need to replenish stocks.
4. Sales. The module stores information about the client base, purchase history, etc. The program performs some routine functions, such as mailing.
5. Production. It helps to draw up a production plan, establish interaction between workshops, control production standards.
6. Warehouse. With its help, you can plan the movement of goods, optimize the storage process, and picking cargo.
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