Enterprise Resource Planning - ERP Key Terms

Find out how ERP can work for your company with these key terms

Enterprise Resource Planning, or ERP, is a must-have in today’s busy companies. While ERP itself is a process, there are software solutions out there to assist you. The end result of the implementation of these software solutions is increased efficiency, which is a major money saver. If you are diving into the world of Enterprise Resource Planning, here are some words to give you a head start.

Enterprise Resource Planning

ERP is the process of consolidating all of your company's sections and systems together under one computer system. The purpose of this is to make all company departments more efficient, and to save time and money in information technology because there is less hardware to maintain.

ERP software

ERP software is a solution to the problem of companies having different programs for different aspects of their business. For example, when your company makes a sale, one computer system handles all aspects of that sale, from invoicing to packing slips, as opposed logging onto different programs for every stage of the sale.

Data warehouse

Where does all of the information that is collected by this ERP software go in order for each department of the company to access it? The answer is into a single, comprehensive database, or data warehouse. It is important to treat all of your company data carefully and make sure it is safely stored, because all information regarding your business is stored in that database.

Audits

Auditing, or checking up on, an ERP system shortly after implementation ensures that the system fits with your company's needs and is functioning the way it should. There are government regulations such as Sarbanes-Oxley, that require companies to keep tight records on the inner workings of their business. Ensuring that your ERP system is working for your company the way it is intended will go a long way to keep you in compliance. This can be done by your management or IT team, or you can hire consultants.

Operational efficiency

When all aspects of a company such as the people, technology and procedures are working together, there are no wasted resources and the business is running at its peak, then this is operational efficiency.

Best practices

Best practices are the ideas and actions that work the best. For example, best practices for ERP implementation are the ideas and actions taken in order for there to be a flawless transition from the multi-system technology infrastructure of the company, to the ERP system.

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