Enterprise Resource Planning Definition

Enterprise Resource Planning Definition – It’s called ERP planning systems that manage business aspects of production, distribution and others in a company. An ERP solution, Enterprise Resource Planning¬† or known as integrated management software, and is defined as a group of modules connected to a single database. The ERP is a software package that manages all business processes of an enterprise, integrating various management functions into a single system; in other words, it represents the “backbone” of a company.

Often they are known as ‘back office’ reverse ‘front office’, in so far as the first is concerned with internal administrative aspects, while the latter term refers to software or operations related to customer and public.

ERP is an acronym for “Enterprise Resource Planning”. This practice has to do with the gerenciamento of different resources, business aspects and issues of production and distribution of goods and services in a company.

An ERP system in an institution would deal typically manage production, logistics, sales, distribution, inventory, delivery, billing and accounting, among other things. For this different softwares that facilitate the organization of data, communication with different partners, logging operations and reporting can be used.

The ERP is defined by two basic principles:

Applications as independent modules, but perfectly compatible in a single common database.

Using a workflow engine used for defining all the tasks of a process and manage their implementation across all system modules.

What is the scope of an ERP?

A software package of integrated management allows to build a coherent information system on a single base. This covers a wide range of management:

  • Purchase Management
  • Sales management
  • Management accounting: accounting customers, suppliers, assets, personnel ..
  • Management control
  • Production management (planning, etc.)
  • Inventory Management (logistics)

Thus an ERP consists of several modules that correspond to each of the areas of management and ensures the uniqueness of the information it contains, because there is only a single logical database

To be considered as such an ERP must fulfill the following functions: to be integral (manage all aspects of a company), be modular (split its aspects according to the different departments of the company), and be adaptable (ie, conform to the specificities of each institution).

Currently, an ERP system is used in all types of businesses. Not only at the production department and finance, but are also covered aspects of technology, human resources, marketing and strategic management. This type of software or system can centralize operations and information throughout the company, facilitating peer work, problem solving and arrive at satisfactory and precise conclusions. so that,s all about Enterprise Resource Planning Definition, enjoy it!