ERP is abbreviation of enterprise resources planning. It is software to
integrate all the company’s departments with its needs and functions into a
single computer system. It allows integrating and automating the majority of
the company business process like product planning, purchase, controlling the
product, inventory control, interaction with suppliers and customers,
delivering the service to customer and keeping orders in track. Additionally,
ERP provide reliable information to the decision makers at the time they need
it. ERP market has increased with the last few years and it is rate still
growing. Many companies have shift their management system into EPR because
they realize its advantages in term of reducing the cost, increasing the
inventory turns and accuracy rate, improving customer service and response to
customer will be faster. Moreover, there will be reduction in a paper work and
setup times. Using ERP enable to gather a customer data. So, the company will
have customer database usable by all applications. All in all, ERP leads to
high quality work. Like most of famous applications, ERP has risks. There was
70% of all ERP projects fail to be fully implemented, despite the high cost of
the software and the length of time that taken in the implementation stage.
Furthermore, 50% of companies said it was hard to make changes in ERP to meet
the business requirements.
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