Enterprise Resource Planning (ERP) Definition, Benefits, Types and Resources

What Is an ERP Software Solution?

ERP is an acronym for Enterprise Resource Planning.

As a top Sage, Intacct and Epicor ERP reseller, and a leader in creating ERP software solutions that are tailored to meet the unique business needs of our clients, we are often asked to define and explain the benefits of ERP software applications.

What is ERP?

ERP is an acronym for Enterprise Resource Planning. Enterprise Resource Planning  (ERP) software applications help businesses to manage and connect information from all core areas of the organization with the aim of improving effective decision making. ERP software solutions promote visibility throughout the entire organization, allowing decision makers to improve business operations such as; inventory management, accounting, order management, human resources, supply chain,  product lifecycle, customer relationship management (CRM) among others. ERP software should serve as the focal point for managing all important aspects of a business. CompuData provides customers with the option of choosing between three leading ERP software— Intacct ERPSage ERP,  and Epicor ERP.

Talk to an ERP Consultant About Improving Your Business Productivity

Types of ERP Software Implementation Systems:

Legacy or On-Premises ERP

On premises or Legacy ERP systems are implemented with on-premise database systems (servers) used for storing and backing up information from the ERP application. Because ERP applications tend to connect different systems, the type of deployment chosen—on-premise, cloud hosted, cloud based (SaaS)— plays a big role in ERP implementation process.

Cloud Based ERP (SaaS)

For Cloud based (web) ERP or Software-as-a-Service (SaaS) ERP implementations ERP software applications are hosted using the ERP vendor’s external database or servers. The unique advantage with this type of system is the ability to have an ERP system up and running in no time, automatic upgrades, as well as reduction in hardware and support costs.

Cloud Hosted ERP

Cloud hosted ERP systems allow businesses to take advantage of storing data in the cloud through a remote data storage service provider such as CompuData Cloud. With this type of system, businesses have the ability to either move all ERP data storage to the cloud or operate in a hybrid or two-tiered ERP system, where data is stored both on-premises and/or in the cloud. Benefits include; mobility, data recovery services, and reduced costs.

Core Functional Areas of an ERP System Include:

Manufacturing and Distribution

  • Order Fulfilment Process Tracking
  • Quality and Control Improvment
  • Inventory and Warehouse Management
  • Product Tracking Using Serial Numbers
  • Monitor Overhead and labor costs

Accounting and Finance

  • Cash Flow Management
  • Budgeting and Forecasting
  • Accounts Payable
  • Accounts Receivable
  • General Ledger
  • Financial Reporting

ERP Manufacturing Ebook

ERP Software Benefits

Improved Productivity

ERP systems automate manual business tasks and  processes to create a streamlined, cost-efficient organization that promotes productivity.

Enhanced Business Visibility

With the integration of otherwise disparate systems and processes, ERP systems improve communication between all aspects of a business from customer service, to accounting, to human resources.

Analytical Decision Making

ERP software solutions present a way for business managers to use interconnected dashboards to quickly analyze, report, and improve business performance across the entire organization.

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