1 Enterprise Resource Planning (ERP) Pradeep Rapolu
Enterprise Resource Planning Version Upgraded
Jan 15, 2015
The description of Enterprise Resource Planning in the sense of an e-commerce business process. embedded visual effects makes easy to understand..
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Enterprise Resource Planning (ERP)
Pradeep Rapolu
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What is ERP?
The practice of consolidating an enterprise’s planning, manufacturing, sales and marketing efforts into one management system.
Combines all databases across departments into a single database that can be accessed by all employees.
ERP automates the tasks involved in performing a business process.
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Employees
Managers andStakeholders
How Do ERP Systems Work?
CentralDatabase
ReportingApplications
HumanResource
ManagementApplications
FinancialApplications
ManufacturingApplications
InventoryAnd SupplyApplications
ServiceApplications
Sales andDelivery
Applications
Sales ForceAnd CustomerService Reps
Customers Back-officeAdministratorsAnd Workers
Suppliers
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An ERP Example: Before ERP
Customers
CustomerDemographic
FilesSales Dept.
Vendor
OrdersParts
Accounting
AccountingFiles
PurchasingPurchasing
Files
Order is placedwith Vendor
Invoicesaccounting
InventoryFiles
Warehouse
Checks for Parts
Calls back “Not in stock”
“We ordered the parts”
“We Need parts #XX”
“We ordered the parts”
Sends report
Sends report
Sends report
Ships parts
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An ERP Example: After ERP
Database
Customers Sales Dept.
PurchasingWarehouse
Accounting
Vendor
Inventory DataIf no parts,
order is placedthrough DB
OrdersParts
Order is submittedto Purchasing.
Purchasing recordorder in DB
Order is placedwith Vendor
And invoices accounting
Financial Data exchange;Books invoice against PO
Books inventoryagainst PO
Ships parts
Potential Benefits of ERP
Internal Benefits
– Integration of a single source of data
– Increased productivity
– Reduced operating costs
– Improved internal communication
– Foundation for future improvement
External Benefits
– Improved customer service and order fulfillment
– Improved communication with suppliers and customers
– Enhanced competitive position
– Increased sales and profits
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Who are the main ERP vendors?
SAPMicrosoft DynamicsOracleEpicorInforRAMCO
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