E.R.P.

Enterprise Resource
Planning

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Understanding E.R.P.
 The basic objective is to make money
 In order to make money company the
does following
 Produces Services / Goods
 To produce goods or services the
company has to manage vendors
 Sells Services / Goods
 To sell goods company has to manage
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Understanding E.R.P.
 Company has to manage employees
 Company has to manage assets
 Company has to manage bank
accounts, funds and finances
 Company has to manage inventories

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Understanding E.R.P.
 To manage above the company has
departments
 Example Finance department, sales
department, purchase department,
production department
 Each of these departments can have
their own independent specialized
software
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Understanding E.R.P.
 Independent software management
 Example Business scene 20 years ago
or in small companies
 Lack of coordination between credit
control and logistics department
 Dispatches to non paying customers

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Understanding E.R.P.
 Huge orders to bad quality vendors
 Memory and verbal based orders
handled by trusted old guys of the
company

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Understanding E.R.P.
 ERP hence is an application / software
which entire company can use for all
the departments
 Individual departments can be
represented as a module
 These modules are specialized
depending upon the requirements of
the company
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Understanding E.R.P.
 Modules talk to each other and
exchange information
 Data transfer takes place and multiple
data entry is not needed
 Synergy is created and entire enterprise
works as a singular unit
 Hence ERP encompasses whole
organization
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Company
VENDORS

OTHERS

COMPANY

CUSTOMERS BANKS

STATUTORY
AUTHORITIES

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COMPANY

 Hence a company has to deal with

vendors , customers, banks, statutory
authorities
 To encompass these in to a single unit
an E.R.P. package is the ultimate
solution

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E.R.P.
 The leading ERP solution providers are
as follows
 S.A.P.
 Oracle
 Microsoft Dynamic Navision

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Why S.A.P. is popular
 Popularity of SAP is due to following
 (RDBMS)
 Relevant transactions is available to all
the modules in real time as soon as
they are posted
 Real time is the reason of popularity
and screen is the focal point of data
processing
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Why S.A.P. is popular
 SAP is a modular software and each
module represents a business area
 The basic modules are Finance,
Logistics and Human resources

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Why S.A.P. is popular

LOGISTICS

RDBMS

HUMAN
FINANCIAL
RESOURCES

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SAP Modules
 SAP has various modules like financial
accounting, controlling, asset
management, project system, plant
management, material management,
quality management, production
planning, Sales and distribution

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Material Management
 All my tutorials will focus on material
management, sales and distribution,
finance and controlling

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