ENTERPRISE RESOURCE

PLANNING (ERP)

Presented By GROUP 1
Enterprise Resource Planning (ERP)
Enterprise Resource Planning (ERP) is a software-based process used bycompanies to
manage and integrate core operations like finance, HR,supply chain, procurement, supply
chain, services, manufacturing, etc.

ERP stands for Enterprise Resource Planning and refers to the softwareand systems used to
prepare and manage all the core supply chain,production, services, financial and other
operations of a business. ERPsoftware can be operated to automate and simplify particular
activitiesacross a business, such as procurement and accounting, project management,
consumer relationship management, risk management,observation, and supply chain
management.
How does it Work ?
Every ERP module typically focuses on one business area, but they worktogether using the
same data to meet the company's needs. There aremany components such as finance, HR,
accounting, procurement, sales,logistics, and supply chain, companies can choose the module
they wantand can add on and scale as required.

Then real-time data is woven into business operations and workflowsacross departments.
Managers can see if one location is doing remarkablybetter at bypassing spoilage than a sister
site a few towns over and workto identify why, while operations can confirm staffing levels
align withtraffic patterns. It delivers the most significance when a company hasmodules for
each primary business function and provides timely, correctdata entry.
Various Types of ERP
There are mainly 3 types of ERP systems that function in differentdeployment environments;

On-Premise ERP

Cloud Based

Hybrid
On-Premise ERP
It is hosted on the company's own computer and maintained onsite inphysical office space
within an organization. In this type, the company isfully responsible for security,
maintenance, upgrades, and other fixes.Nowadays the popularity of this model has
decreased.
Cloud-Based
It is a cloud-based ERP system that runs on remote servers and ismanaged by a third party.
Users access the cloud ERP through a secureweb browser. It will provide great flexibility to
access information andreports from anywhere with just an internet connection. There
aremultiple deployment options for cloud-based ERP, that are single-tenantand multi-
tenant.

Single-tenant: It is a separate model of the ERP used by a singlecompany that does not share server
space with others and providesthe client greater control over the software. It requires an in-houseIT
team to manage the operations.

Multi-tenant: With a multi-tenant model, multiple organizations usethe same software instance and
server. Within this model, thesoftware is upgraded frequently to the latest version. It doesn'tneed
any in-house IT team.
Hybrid
Hybrid ERP merges characteristics of on-premises and clouddeployments. The hybrid
system is a two-tier ERP, where a businessmaintains its on-premises ERP in place at
headquarters but avails cloudsystems for associates or regional offices. These cloud systems
are thencombined with the on-premises system. it gives the flexibility to turn tocloud
systems for certain business requirements while sticking with theiron-premises systems for
other functions.
Open Source
It is like other inexpensive or sometimes free open source solution that issuitable for some
small-scale businesses. Various open-source ERPproviders allow businesses to download
their software for free. They willthen be charged a minimal annual fee for cloud access. For
this, you needa person with deep knowledge of how to configure and develop thesoftware.
Types of ERP Systems by Business Size
Small Business ERP

Midsize Business ERP

Enterprise ERP
Small Business ERP
Small-size businesses should identify their requirements before startingto search for
software of those specific specifications. This will keep costsdown and reduce the training
required for employees. That's why cloudERP is probably the best choice for small
businesses. This module has theability to scale up and support new features over time as
well as astraightforward implementation technique. It provides the scalability tofulfill the
business's necessities as it expands.
Midsize Business ERP
Medium-size companies demand a platform that can support almost allthe functionalities
that ERP has and is capable of scaling further to meetfuture demands. Mid-size businesses
need customizations at any time.
As mid-size businesses lack a prominent IT team, so, cloud and opensource ERP software are
very effective for this type of business.
Enterprise ERP
Enterprise opts for software that supports all components of theirbusiness. They require a
system that can capture, process, and interpret ahuge amount of data and deal with the
various business demands.

Hybrid and on-premises ERP fits perfectly with enterprises as some ofthe enterprises
adopted ERP before the cloud was introduced so they cantake initiatives to move ERP
from on-premises to Hybrid.
ERP modules and Their Features
An ERP comprises 13 different types of modules. Here's a quick guide toall 13
mostly used ERP modules.

1. finance 8. Customer Relationship Manegement

2. Procurement 9. Professional Services Automation
3. Manufacturing 10. Workforce Management
4. Inventory Management 11. Human Resource Management
5. Order Management 12. Ecommerce
6. Warehouse Manegement 13. Marketing Automation
7. Supply Chain Manegement
Finance
The finance module is the foundation of every ERP system. It managesthe enterprise's all
financial activities such as tracking of transactions,accounts payable, accounts receivable,
reconciliations, and other financialactivities.

Procurement
This module deals with purchasing, whether raw materials or finishedgoods. It can
minimize overbuying and underbuying when linked todemand planning. Procurement also
can automate requests for quotesand purchase orders.

Manufacturing
The manufacturing process is complicated but the manufacturing moduleof the ERP system
can ensure is in line with demand and monitor thenumber of in-progress and finished items.
Inventory Management
This module of the ERP system shows current inventory levels to the SKUlevel and updates
those numbers in real-time. It also measures keyinventory-related matrices and optimizes
stock based on current andforecast demand.

Order Management
order management module observes and prioritizes customer ordersfrom all channels as
they come in and tracks their progress throughdelivery. It can improve the customer
experience by speeding upfulfillment and reducing delivery time.

Warehouse Management
It executes warehouse activities like picking, receiving, packing, andshipping. It saves the
cost and time for the warehouse by identifying moreefficient ways to execute these tasks.
Supply Chain Management
SCM or Supply Chain Management module of ERP deals with the flow of goods and
services and includes all processes that turn raw materials into final products.

Customer Relationship Management

CRM or Customer Relationship Management is also a very popularmodule of ERP that
tracks all communications with clients, assists withlead management, and can boost sales by
enhancing customer service.

Professional Services Automation

PSA module plans and tracks projects, including the time and resourcesspent on them. It
encourages collaboration among the staff members andsimplifies client billing.
Workforce Management
WFM module of ERP system keeps track of all work roles withattendance and hours
worked. This also records the productivity ofindividual employees, teams, and departments

Human Resource Management

HRM module of ERP system keeps employees' records with detailedinformation like
performance reviews, and available PTO. It also can teaseout workforce trends in every
department.

Ecommerce
This module allows retailers and brands to manage and marketing oftheir online stores.
With this, they can change the site look and feel andadd and edit product pages of their
stores.

Marketing Automation
The marketing Automation module deals with marketing efforts via theweb, email, social
media, and other digital channels. It enables enterprisesto optimize and personalize their
message. It can enhance sales, andleads, and boost customer loyalty.
Implementation of ERP Process
Planning
Before looking for an ERP system, a company should form across-functional team to
determine what they need from an ERP system.They should also identify the inefficient
process and other obstacles tobusiness growth.

Evaluation
After determining the requirements, the team should evaluate leadingofferings and select
the platform that can best fix the existing problems,satisfy all department's requirements
and boost the company's growth.

Design
At this phase, the team decides whether the system can support existingworkflows and
which techniques may need to change. This is also thetime to specify any needed
customizations.
Development
After the designing phase, internal or external technical expertsconfigure the software to
fulfill your specified needs and begin relocatingthe company’s data to the new system.
Then time is to decide how youwill introduce employees to the system and begin
scheduling sessionsand producing required training materials.

Testing
This is a must-needed step in implementing an ERP system. It is veryessential to make
sure everything is working as expected and fix relatedproblems.

Deployment
After testing it's time to deploy the system in the enterprise. The companymust prioritize
employee training to mitigate resistance to change. Somebusinesses opt for a phased
rollout, while other businesses make allmodules live at once.

Support
Now assure your employees have everything they need to take benefit ofthe new system.
With the help of specialized consultants, you can includeadditional configurations to this
system.
 Advantages of Enterprise Resource
Management
• Improved Workflow Visibility ERP systems provide real-time data about manufacturing plans and distribution centers,
reducing the need for in-person updates.

• Business Intelligence ERP systems can access real-time data across the company, enabling effective trend identification and
extensive business insights.

• Easy Scheduling ERP systems offer customizable scheduling tools, allowing for efficient monitoring of shifts, inventory
supply, and plant maintenance.

• Improved Efficiency and Productivity ERP systems increase efficiency in daily transactions like order completion, on-time
shipment, seller performance, quality management, invoice reconciliation, sales completion, and asset management.

• Cross-Department Collaboration ERP communication tools can manage internal communication across time zones and
language barriers, preventing errors and ensuring efficient communication.

• Real-time Risk Management ERP systems provide real-time risk management tools, automated audits, and fraud
monitoring, providing additional security.

• Data Security: ERP systems keep sensitive data in one place, using advanced security protocols to prevent harmful attacks.

• Customization: ERP software or suits offer customization features, allowing for the integration of specific features.
Disadvantages of Enterprise
Resource Planning
Time and Cost Sufficient
• ERP systems are now affordable for small and medium-sized businesses due to SaaS systems.
• ERP projects often face complexity due to complex business processes and data requirements.
• Long deployment methods can hinder ERP system speed in dynamic environments.

Costly License, and Infrastructure

• On-premise ERP systems require significant investments in hardware, software, and IT team.
• Traditional ERP requires on-site servers and networking infrastructure in the company's data center.
• Strong security systems are necessary to protect data.

Long Deployment Period

• ERP deployment involves multiple functions, departments, and changes.
• Employees may take time to get comfortable with the system.
• Large businesses may experience a lengthy data transfer process.