ENTERPRISE RESOURCE PLANNING

Final Report
FACULTY: SIR FARHAN

DATE OF SUBMISSION: 17/07/2021

Minhaj Azmat 9443

Hammad Ali 9381
Tahir Shabbir 9379
M.Asim Salahuddin 9397
ACKNOWLEDGMENT

The completion of this undertaking was not possible without the participation and assistance of

so many people whose names may not all be enumerated. Their contributions are sincerely

appreciated and gratefully acknowledged. However, the group would like to express that their

deep appreciation and indebtedness particularly to the following:

We would like to express our sincere gratitude to our Instructor sir Farhan Siddiqui for providing

their invaluable guidance, comments and suggestions throughout the course. We would

especially thanks to the Departmental Head Mr. Humza Zuberi & Senior Manager Mr. Imran for

their endless support, kind and understanding spirit during our project.

Too all relatives, friends and others who in one way or another shared their support, either

morally, financially and physically, thank you.

Above all, to the Great Almighty ALLAH, the author of knowledge and wisdom, for his

countless love.

Thank you.
 Table of Contents
What is ERP?

 Fundamental of ERP
 Why is ERP Important for Businesses?
 How can ERP Improve or Help a Businesses?
 Who uses ERP?
 Benefits of ERP Systems
 Disadvantages of ERP Systems

What is E-Commerce?

 Types of E-Commerce Models

 Example of E-Commerce
 Advantages of E-Commerce
 Disadvantages of E-Commerce

What is E-Commerce ERP?

 Basics of an ERP and E-Commerce Integrates

 ERP E-Commerce Benefits and Important Features
 Benefits
 Features and Importance

Conclusion
 What is ERP?
ERP is also known as enterprise resource planning, organizations use to control or manage
their day-to-day works such as project management, risk management and supply chain
management and so on, using ERP software. Enterprise resource planning software helps plan,
budget, forecast, and inform on an organization's financial results, is included in a complete ERP
system.

ERP is a software system that combines the core functional areas of a company's business
activities into a single system.

ERP solutions avoid duplicate data and ensure data integrity with one single source of
information by gathering an organization's shared transactional data from numerous sources.

ERP (Enterprise Resource Planning) is a software application that automatically performs

business processes and gives insights and control internally, based on a centralized database that
collects data from organizational departments such as manufacturing, supply chain,
sales, accounting, marketing, and human resources.

Leaders receive cross-departmental insight once information is collected in one place, allowing
them to review numerous scenarios, find process improvements, and achieve significant
efficiency gains. As a result, users will spend less time searching for data, saving the cost and
increased productivity.

Fundamentals of ERP

ERP systems are based on a common database and a single, well-defined data structure (model).
This makes sure that data across the company is standardized and based on uniform standards
and consumer experience. These fundamental components are subsequently integrated to
business processes controlled by workflows across organization departments (for
example, human resources, finance, marketing, engineering and operations), integrating systems
and the people who are using them. ERP is the mechanism due to which a modern company may
combine people, technologies and processes.
For example: Consider an organization that manufactures automobiles by collecting equipment
from a variety of vendors. It could implement an ERP system for tracking the request and
purchase of these products, as well as guarantee that each element of the procure-to-pay process
uses same and clear data that is linked to company processes, workflows, monitoring, and
analytics. When the automobiles manufacturing firm's ERP system is properly implemented, a
component, such as "front brake pads," is equally identified by part size, name, source,
material, lot number, vendor part number, security code, cost, and configuration, among other
descriptive and data-driven objects. To every individual and system that needs to fulfill their best
duties and responsibility, must install ERP system because it makes easier to collect, analyze,
organize and distribute this information.

ERP also guarantees that all data items and attributes are rolled up to the right account in the
general ledger, ensuring that all costs are recorded and displayed correctly. It would be difficult
for the automobiles manufacturing company to figure out how much is spent annually on front
brake pads, if the front brake pads were called “front brakes” in one software “brake pads” in
another system, and “front pads” in another.

Why Is ERP Important for Businesses?

The companies must have ERP system to make best use of their resources. They can save their
money if they help executives in redistributing financial and human resources, as well as
designing more efficient processes without compromising quality or performance.

An ERP is also effective when it comes to planning and coordination. Access of detailed
information about current inventory and customer orders can be done by employees, as well as
vendor purchase orders and forecasted future demand. If required, they can make changes to
avoid difficulties. Employees can check on the state of other divisions to inform their own
decisions, which increases communication and collaboration through EPR system.

Most of those statistics and analytics that can build or destroy a business are also available
through the ERP system. The capacity if an ERP executives to put a vast amount of data into
graphs and charts that clearly illustrate patterns and help model possible outcomes.
 How Can ERP Improve or Help a Business?

Access to data from anywhere: Employees are no longer required to shuffle through stacks
of papers or files strewn on their desktops. A warehouse manager can log in from a mobile
device while on the shop floor, and a salesman can check inventory while at a customer's
location with cloud-based ERP.
Information is always up-to-date: Because the ERP system is continually receiving
information from various departments, it’s updated immediately as inventory is pulled, a
payment is posted or emails are sent to customers. This provides a major advantage because
decision-makers are basing their choices on up-to-the-minute data.

Business decisions based on the same data: With a common database, all decision-
makers are on the same page. There is no duplicate or conflicting sources of information, and
companies have the ability schedule and distribute dynamic reports automatically. Need more
depth? Underlying data can be accessed simply by clicking the report.

Who Uses ERP?

ERP has proven to be beneficial to businesses across a wide range of industries and business
models. Flexible solutions with a wide range of features can meet the needs of a wide range of
organizations and requirements.

Industries that count on ERP to run their businesses include: 

 Advertising and digital media

 Apparel, footwear and accessories

 Campus stores

 Consulting

 Education

 Energy

 Financial services
 Food and beverage

 Health and beauty

 Healthcare and life sciences

 IT services

 Manufacturing

 Media and publishing

 Non-profit

 Professional services

 Restaurants and hospitality

 Retail

 Software and technology

 Transportation and logistics

 Wholesale distribution

 Finance/accounting: The accounting team is often the first adopter. This group will
track and report on all transactions and other financial information in the system,
including accounts payable (AP), accounts receivable (AR) and payroll. With ERP,
financial planning and analysis (FP&A) experts—whether a separate role or part of the
accounting department—can turn comprehensive financial data into forecasts and reports
on revenue, expenses and cash flow. 

 Supply chain: Employees focused on operations, a group that includes purchasing

agents, inventory planners, warehouse managers and senior supply chain leaders, rely on
the ERP system to ensure a smooth and continuous flow of goods from supplier to
customer. They count on accurate, detailed information provided by the system to
optimize inventory levels, prioritize orders, maximize on-time shipments, avoid supply
chain disruptions and identify inefficient processes.

 Sales and marketing: An ERP solution can increase the productivity of and drive
better results for your sales team by automating lead management and monitoring the
interactions prospects have with your company. Reps can document discussions and
 change the status of prospects as they move through the sales funnel. Using those same
records, marketing can automate and manage outreach across all channels, from email to
display ads to social media, and measure the effectiveness of those messages and
channels to better allocate its budget. 

 Human resources: The HR department tracks all employee information and broader

workforce trends in the ERP. It can quickly find contact information, compensation and
benefits details and other documents for each employee. HR can also monitor metrics like
retention by department, average pay by title, promotion rate and other metrics to better
allocate its own staff and assist line-of-business managers.

Benefits of ERP Systems

Cost Saving: Perhaps the most significant benefit of ERP systems is that they can save your
organization money in different of ways. You can reduce errors and the need to recruit new
people at the same rate as your organisation grows by automating numerous simple, repetitive
processes. Cross-company visibility makes it easier to discover inefficiencies that drive up costs
and leads to better resource deployment, including personnel, inventory, and equipment. And,
with cloud ERP, businesses may immediately get additional value from the software, in addition
to what they're already paying for it.

Workflow visibility: With all workflows and information in one place, employees with access
to the system can see the status of projects and the performance of different business functions
relevant to their jobs. This visibility may be particularly valuable to managers and leaders, and
it’s far faster and easier than searching for the right documents and constantly asking colleagues
for updates.
Risk management: ERP technology reduces risk in a few ways. Granular access control and
defined approval workflows can strengthen financial controls and reduce fraud. Additionally,
more-accurate data heads off mistakes that could lead to lost sales or fines. And finally, the
ability to see the status of the entire operation enables employees to quickly handle risks posed
by business disruptions.
Data security: ERP providers understand that your system houses critical, sensitive data and
take necessary steps to ensure it is secure. This diligence is more important than ever as the
volume and scale of cyberattacks increase. Cloud ERP software, in particular, uses cutting-edge
security protocols to ensure your company doesn’t fall victim to a damaging attack.

Flexibility: While ERP software helps businesses follow best practices, it also offers the
flexibility to support unique processes and objectives. The system gives administrators the ability
to build out company-specific workflows and create automatic reports important to different
departments and executives. An ERP enhances your organization’s innovation and creativity.

Customization: While most companies find that modern ERPs support their businesses “out of
the box,” some firms need to add to the extensive built-in functionality. If you have a lot of
specialized processes, look for an extensible system that allows your integrator or IT staff to
write code that adds needed features, or that can integrate with home-grown or legacy solutions.
However, before going the custom route, take a close look at your processes—the prebuilt
functionality and configurations modern ERP solutions support are based on best practices
gathered from thousands of companies. Aim to minimize customizations.

Disadvantages of ERP Systems

System cost: Because they were expensive to purchase, implement and maintain, early ERP
systems were accessible only to large companies. However, that hasn’t been the case for two-
plus decades. While ERPs still require a time and financial investment, the technology has
become much more affordable thanks to both SaaS systems that charge a recurring fee and more
solutions designed for small and midsize businesses entering the market. Organizations can use
tools to calculate estimated savings after one and three years, for instance, to find out when
returns will surpass costs. 

Need for training: Like any new tech, ERP has a learning curve. Anyone who will use the
software—that is, ideally, most or all of your employees—requires some level of training.
Although there may be resistance at first, that should fade away as people realize how much the
technology will help them. Newer systems that receive frequent updates are more intuitive and
user-friendly, reducing training requirements and increasing adoption. 

Data conversion costs: When moving to a new ERP, you may need to convert some data
into a format that’s compatible with the new platform. This can lead to unexpected costs and
delays, so review your databases, and work with your IT team or an integration partner to
identify potential data compatibility issues early on. Then, you can factor conversion efforts into
the ERP implementation plan. 

Complexity: An ERP system is loaded with features, and that can be daunting to your
workforce. But the software available today is far easier to use than legacy systems because
vendors have focused on improving the user experience. Additionally, employees need access to
only the modules and dashboards required for their jobs, which can make it more approachable.
Thorough training should temper concerns about complexity. 

Maintenance: In the past, maintenance was a large expense that deterred lower-revenue
businesses from adopting ERP. Not only did a company need an IT staff to handle patches,
security and required system upgrades, it often had to pay the vendor or a third-party service
provider for its expertise. This is less of a concern with a SaaS system because the provider takes
care of all maintenance and regularly moves all customers to the latest version—and it’s all built
into the subscription price. Companies concerned about maintenance should thoroughly vet a
potential supplier to ensure it offers a true vendor-managed SaaS system. 

Doesn’t solve process and policy issues: If you have error-prone or inefficient processes,
an ERP won’t necessarily fix them, even though it may increase accuracy. It can, however,
uncover problems in your operations and help you brainstorm better ways to do business. The
same goes for policies that hold the organization back—it’s up to you to adjust those and then
configure the system to support better ways of doing business.

What is e-commerce?
E-Commerce or Electronic Commerce means buying and selling of goods, products, or services
over the internet. E-commerce is also known as electronic commerce or internet commerce.
These services provided online over the internet network. Transaction of money, funds, and data
are also considered as E-commerce. These business transactions can be done in four ways:
Business to Business (B2B), Business to Customer (B2C), Customer to Customer (C2C), and
Customer to Business (C2B). The standard definition of E-commerce is a commercial transaction
which is happened over the internet. E-commerce is a popular term for electronic commerce or
even internet commerce. The name is self-explanatory, it is the meeting of buyers and sellers on the
internet. This involves the transaction of goods and services, the transfer of funds and the exchange
of data.

Types of E-Commerce Models

Electronic commerce can be classified into four main categories. The basis for this simple
classification is the parties that are involved in the transactions. So the four basic electronic
commerce models are as follows.
1. Business to Business

This is Business to Business transactions. Here the companies are doing business with each
other. The final consumer is not involved. So the online transactions only involve the
manufacturers, wholesalers, retailers etc.

2. Business to Consumer

Business to Consumer. Here the company will sell their goods and/or services directly to the
consumer. The consumer can browse their websites and look at products, pictures, read reviews.
Then they place their order and the company ships the goods directly to them. Popular examples
are Amazon, Flipkart, Jabong etc.

3. Consumer to Consumer

Consumer to consumer, where the consumers are in direct contact with each other. No company
is involved. It helps people sell their personal goods and assets directly to an interested party.
Usually, goods traded are cars, bikes, electronics etc. OLX, Quikr etc follow this model.
4. Consumer to Business

This is the reverse of B2C, it is a consumer to business. So the consumer provides a good or
some service to the company. Say for example an IT freelancer who demos and sells his software
to a company. This would be a C2B transaction.

Examples of E-Commerce
 Amazon

 Flipkart

 eBay

 Fiverr

 Upwork

 Olx

 Quikr

Advantages of E-Commerce

E-commerce provides the sellers with a global reach. They remove the barrier of place
(geography). Now sellers and buyers can meet in the virtual world, without the hindrance of
location.

Electronic commerce will substantially lower the transaction cost. It eliminates many fixed costs
of maintaining brick and mortar shops. This allows the companies to enjoy a much higher margin
of profit.

It provides quick delivery of goods with very little effort on part of the customer. Customer
complaints are also addressed quickly. It also saves time, energy and effort for both the
consumers and the company.

One other great advantage is the convenience it offers. A customer can shop 24×7. The website
is functional at all times, it does not have working hours like a shop.
Electronic commerce also allows the customer and the business to be in touch directly, without
any intermediaries. This allows for quick communication and transactions. It also gives a
valuable personal touch.

Disadvantages of E-Commerce

The start-up costs of the e-commerce portal are very high. The setup of the hardware and the
software, the training cost of employees, the constant maintenance and upkeep are all quite
expensive.

Although it may seem like a sure thing, the e-commerce industry has a high risk of failure. Many
companies riding the dot-com wave of the 2000s have failed miserably. The high risk of failure
remains even today.

At times, e-commerce can feel impersonal. So it lacks the warmth of an interpersonal

relationship which is important for many brands and products. This lack of a personal touch can
be a disadvantage for many types of services and products like interior designing or the jewellery
business.

Security is another area of concern. Only recently, we have witnessed many security breaches
where the information of the customers was stolen. Credit card theft, identity theft etc. remain
big concerns with the customers.

Then there are also fulfilment problems. Even after the order is placed there can be problems
with shipping, delivery, mix-ups etc. This leaves the customers unhappy and dissatisfied.

What is Ecommerce ERP?

Whether you’re a business-to-business (B2B), business-to-consumer (B2C), or direct-to-
consumer (D2C) e-commerce retailer, you have one goal: to grow your business. However, as
your business grows, so too does the complexity of your operations. Where once QuickBooks
could handle your accounting, Salesforce could handle your customer relationship management
(CRM), and SkuVault could handle your inventory management, you now require more than
these disconnected, siloed solutions can provide.

Enter e-commerce ERP (Enterprise Resource Planning), the seamless integration of your e-
commerce system with a modern, cloud-based ERP solution. Together, they extend your
organization’s breadth and depth, connecting your processes and procedures for a cohesive,
future-proofed operation.

Basics of an ERP and e-commerce Integration

To understand how an ERP and e-commerce integration works, you must first start with
e-commerce logistics, which includes taking and fulfilling orders, processing payments,
handling returns, managing inventory, ensuring security, calculating taxes, tracking
financials, and providing customer support. These become harder to juggle when your
small operation (perhaps you started in your garage) morphs into a full-fledged operation
with a warehouse—or two, or three—a shipping fleet, and multiple employees. 
Everyone will suffer from a lack of data, consistency, and control. Thankfully, you can integrate
your e-commerce software solutions with a modern ERP, automating your current procedures
and processes and successfully avoiding additional data challenges in the future. 

There are a few ways to integrate ERP and modern e-commerce solutions. You can utilize the e-
commerce solution’s API on your own, which gives you complete customization, but it also
leaves you completely responsible for managing the integration. You can utilize a third-party
solution with a pre-built integration using the API, which is relatively easy to work with and can
often be used “out of the box”—although if you need any personalization, you will pay for and
rely on the third-party team without a guarantee that you’ll get what you want or need.

ERP E-commerce Benefits and Important features

As online businesses thrive and brick-and-mortar retailers fade away, ERP ecommerce capability
has become increasingly important. Integrating your ecommerce platform with an ERP solution
can help your organization maximize productivity, client retention, and income. Integration
possibilities are provided as prebuilt modules or as part of ERP software.
Benefits
With the effective implementation of an ERP system, ecommerce enterprises may gain a slew of
benefits. Because ecommerce businesses operate at a high speed and volume, a customised
solution with advanced features and financial data integration can provide significant benefits.
Here are some of the benefits that ecommerce businesses must look for when connecting their
online platform with an ERP system.

Increased Productivity

ERP software is well-known for its ability to boost operational productivity by integrating
several workflows and automating data exchange. Some ERP programmes can also automate
processes like bank reconciliation and shipment notification delivery. Businesses can perform
more activities in the same amount of time and enhance production through increasing
productivity. Automation capabilities can also be used to improve workflows, resulting in less
time spent fixing human errors or spot-checking materials.

Revenue Generation
Every organization is continuously looking for new technology to obtain income. The methods in
which ERP solutions can support ecommerce enterprises in obtaining more profit varies from
actual cash in hand to implicit revenue gains connected to increased efficiency, automation, etc.
For example, Employee time can be spent on other duties by automating specific business
functions.

Pricing Management
Pricing management, like product information management, refers to the capacity to control
product pricing in an ERP system. You have the option of changing your response to various
customers. For example, in B2B, if customer number one has negotiated rates and customer
number two, a new customer, has not, you can push the correct information out to the
ecommerce platform accordingly.
Access to valuable data
When it comes to access, you'll have real-time access to valuable data pulled from the e-
commerce site where the information is saved when customers interact with you. This
information is utilized to create actionable reports and forecasts.

Process visibility
As a result, the process becomes visible. Simply said, you may design reports that show you how
your organization, sales, refunds, and inventory are performing. You can also examine who is
doing what and measure your company's profitability.

Features and Importance

There are a few important elements that must be included in your ERP search criteria when your
e-commerce business is ready to combine your e-commerce platform with an ERP system.

Finance
While QuickBooks can handle your general ledger (GL), accounts payable (AP), and accounts
receivable (AR), a cloud ERP solution can handle those duties while also actually providing e-
commerce updates. For example, when a sale from an e-commerce site is entered into your ERP
system, it appears in the sales order right away and is updated across your financial records. The
payment is counted as revenue as soon as it is received. Your accounts, inventories, customers
(including relationships and potential), and sales are all audited by an ERP system. The e-
commerce system becomes an extension of the auditing system when you integrate your e-
commerce platform with ERP.

CRM
It's a win-win-win situation when your ERP interacts with your e-commerce system. Why? A
successful e-commerce firm needs a standardized system for managing leads, contacts,
opportunities, and customer accounts, as well as the capacity to track what's going on at each
stage of the sales process. In other words, you need a CRM solution that is completely linked and
provides real-time, synced data from a single source to every department. Building a customer
database within the integrated solutions allows you to easily reach out to your customers with
offers like sales, discounts, and special promotions; these promotions are designed inside the e-
commerce platform, and the ERP system understands what it's getting and keeps track of it for
later reporting.

ERP E-commerce Benefits and Important features

Inventory management
Inventory tracking gets more difficult when business is booming. Your customers want to know
if a product is in stock, and you need to know where your products are located. An integrated
ERP system is intelligent enough to convey this information to all parties involved. It gives you
accurate, actual accessibility inventory, whether it's at a store, spread across many warehouses,
or in route. You have access to reorder quantities and inventory costs as well.

Product information management

Because you sell products to clients in a variety of methods, having all of your product
information in one place is essential. This information could relate to your vendors, product
pricing, and customer-specific pricing, as well as product alternatives. Having all of your
information in one place helps you to distribute it to several areas. In essence, you've got a
database system. If you sell on multiple websites, for example, it helps you to differentiate
between audiences and transmit information that is relevant to each.

Shipping, distribution, and warehouse management

An integrated ecommerce ERP solution, like inventory management, is the most precise and
efficient way to manage your shipping, distribution, and warehouse management needs. Wave
and batch selecting, packaging, PO receiving, putting away, transferring, and physical counting
are all part of the distribution process. These tasks are mechanized by ERP. EDI compliance is
managed by third-party EDI software, and warehouse workers can utilize phones or tablets to do
their responsibilities. Lot and serial number tracking reduces mistakes, and third-party EDI
software handles EDI compliance.

Conclusion
Ecommerce ERP could be the answer for any ecommerce business trying to expand. Your e-
commerce system can be seamlessly integrated with a modern, cloud-based ERP solution to
connect your processes, procedures, and data, resulting in a more efficient and successful
business.

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