Financial Accounting − Deals with financial transactions and data.
Human Resource − Deals with information related to employee of an organization.
Customer Relationship Management − Deals with capturing and managing customer’s relationship,
facilitating the use of customer experience to evaluate the knowledge database.
Sales and Distribution − Deals with order placement, delivery, shipment and invoicing.
Logistics and Warehouse Management − Deals with storage of products and shipment.
Manufacturing and Material Management − Deals with the production and production planning activities.
Supply Change Management − Deals with the movement of products, storing, managing, and controlling
Business Intelligence − Analyzes data and converts the same to information.
Advantages of ERP
By integrating the business processes, the ERP offers the following advantages −
Saves time and expenses.
Allows faster decision-making by the management, utilizing the data and reporting tools designed in the
Single data source and sharing of data among all the units of an organization.
Helps in tracking every transaction that takes place in an organization, from starting till end.
Supplies real-time information whenever required.
Provides synchronized information transfer in between different functional areas such as sales, marketing,
finance, manufacturing, human resource, logistics, etc.
Disadvantages of ERP
It is not always easy to incorporate ERP in an organization. ERP suffers from the following drawbacks −
Sometimes business processes critical to an organization are to be re-engineered to align them with an ERP
Cost of complex integration can be very high.
Switching from one ERP solution to another increases the implementation cost even further.
End-users are to be trained for their daily operations.
Customization is not preferred.
Many companies develop and implement various ERP packages according to their budget and requirements to help
them meet their business needs and run their business efficiently.
The following link takes you to a page from Wikipedia where you can find a list of almost all the ERP packages
Evolution of Enterprise Resource Planning
Enterprise resource planning (ERP) has evolved as a strategic tool, an outcome of over four decades. This is because
of continuous improvements done to the then available techniques to manage business more efficiently and also
with developments and inventions in information technology field.