14.02.2009

The Age of ERP

As organizations grow - or as they expand their vision - their requirements increase. And to meet these increasing requirements, they start seeking "Enterprise Solutions". One of these solutions is ERP (Enterprise Resources Planning).

 

  • Having real-time and accurate visibility into the current inventory.
  • Being able to execute improved MRP (Materials Requirements Planning) activities using an accurate view of the inventory.
  • Using improved materials planning, evaluating their inventory and having the input material for manufacturing supplied on demand, thereby reducing the cost of keeping inventory.
  • In addition to better materials planning, being able to apply improved approaches and algorithmic methods for deciding equipment use and order in manufacturing activities. In other words, being able to perform Finite Capacity Planning, which involves providing customers with accurate schedules and thereby increasing customer satisfaction.
  • Being able to determine the true cost of production, and to take any necessary measures required.
  • To be able to accurately perform expense and income analysis, and put together realistic budgets.
  • To accurately plan for cash flows, and to realize payments and collections in an orderly fashion.
  • For documents to be tracked and conveniently accessed, storing them in electronic form, instead of in dust-gathering cabinets.
  • To acknowledge the patronization of their customers, and to monitor and manage all interactions with them.
  • In order to prevent human errors within the corporate systems, to be able to have the systems automatically issue alarms and to go so far as to have these systems automatically generate warning e-mail messages.
  • And on top of all this, companies want to cooperate in an electronic marketplace, and to exchange data with each other in such an electronic environment.

 

In short, organizations strive to monitor all of their processes in an accurate and integrated manner. They would like to be able to track them from a central location and report on the data generated from the sales, purchasing, inventory, production, planning, maintenance, accounting and finance processes. Furthermore, they would like these interrelated processes to automatically feed each other with data. They would thus like to be able to work in an integrated environment that is consistent and secure, as opposed to one where multiple erroneous entries of data are possible and where data resides on disparate platforms, insecure and open to errors. They would like to be able to have the system generate reports so they can perform an abundance of analysis, as opposed to having to enter copious data in multiple systems just to be able to generate reports. In other words, they would like to save time. They would like to invest the time they save in decision making, in such topics as figuring out how to manufacture the same product with higher quality and for lower cost. Today is the age of competition, and the age of the ERP systems that are able to meet such requirements. 

Dilara Gurdal 
RP Consultant