Finance, Manufacturing, Purchase and Delivery

I. Introduction

Today, many businesses are continuing to grow as a result of linking the various departments involved in operations such as finance, manufacturing, purchase and delivery. They are more complex because they must work together. Moreover, each of the departments has a large and complex information system and if they do not have a good management system it might cause a big problem with the company. The result is each department has a lot of information, but they do not know which information is helpful in the decision to invest and manage resources effectively. Therefore, the business ERP system is an information system that is gaining popularity because it is a computer system that controls every process in the organization and links information from all relevant departments into a central database. As a result, the company data is consistent with a unified coordination. In this paper, I will focus on what ERP is, how ERP can improve a company's business performance, ERP's benefits and drawbacks, ERP's features and functions, and the common mistakes and solutions of ERP. The object of this paper is to describe and clarify what ERP is and how organizations use ERP effectively for success in business.

II. What is Enterprise resource planning?

Enterprise resource planning, or ERP, is a software planning resource of an organization's overall business to achieve the maximum utilization of the business resources. The ERP system is used to manage and plan the use of business resources by integrating data systems to manage the business. The company's ERP system will include and link all of company departments together such as financial accounting, human resource systems, production systems and distribution systems. They are doing this to help the company manage more effectively and reduce time and level of performance as well. Some people think ERP is more difficult to understand and far away from business but in fact the ERP is very close to business, such as the ERP implementation in a real donut shop.

In each shop the ERP system is used for the storage of raw materials, how much a customer pays to buy a donut, to recognize the sale of donuts in a day. The customers will receive a receipt and these systems will lead to cut off materials in the stock. In addition the ERP will transfer the data into a sale and any department that is related in the business.

Moreover, the ERP system is not only related to the purchase of raw materials, production, and sales but also this system includes accounting finance, procurement, personal administration, etc. in a systematic way. The data is related and linked to each other immediately.

Therefore, a company should select the suitable system and bring the ERP system to use in an organization to help manage data, reduce maintenance, reduce incorrect information and reduce storage results.

III. How can ERP improve a company's business performance?

As I mentioned, ERP is an information system that is gaining popularity because it is a computer system to control every process in the organization and link information from all relevant departments into a central database. As a result, data is consistent with the coordination and its unity. Therefore, having the ERP system in an organization will help the company to overcome their competitors in the marketplace and mange systems more quickly.

ERP also helps the company to save time because ERP can help manage and integrate all company information into a central database. Moreover, the ERP system can share information to correct information in all departments in the company. It has many ways that the ERP system can improve a company's business performance, such as centralized data management, keeping track of consumer orders, easy and cheap communication, preventing wastage and increasing the production cycle.

ERP provides the company with the management of centralized data by integrating and storing all of the company data into the central database. Moreover, all of the data can be update automatically and transfer data into various departments. Financial records will collect in this system that help the company known which department is performing better than others. In addition, the finance record can show the company revenue by dividing each department. The Company can decide which department is good, which department should improve, or which units are not profitable for the company. Furthermore, ERP helps to forecast the company investments to make them more successful in the future.

ERP can integrate and keep all data about the company's manufacturing and delivery stored in one place. Moreover, ERP software allows the company to plan and keep track of customers. By using ERP software to track customer's demands from the time the customer service representative receives new orders until loading stock maintenance and sending invoices to clients. In addition, the software can maintain the customers by getting automatic feedback from customers via emails. This process helps the company know about customer feedback to improve products or services in the future.

ERP provides data to the various departments so they can easily send messages, emails and faxes for communication. Even though each department is different and they are located in different parts of factory and head office, all of company's information can link and connect together. Moreover, a lot of companies have many shop branches so ERP can help companies to respond to market demand. When companies install the ERP software at retail shops, it can be used to send products immediately to customers, and as a result, the business can keep customers and certify easy customer care.

ERP software helps to reduce the need to store big stock materials. The ERP software can update data immediately in the inventory department and can order materials on demand if materials are low. This software helps to reduce some inventory and maintenance expenses of the company by having an automated system and reducing inventory loss.

ERP software can give all of the data that relates to the propensity of company's market based on prior data to help the company know about the company and market situation. Moreover, ERP helps the company's management to plan a delivery on time and create the trust for customers and clients as a result to company's market forecast in the future. In addition, the system can get data from salesmen that relates to new customer's orders and can send the data into the company for an increasing the production cycles.

IV. ERP's benefits and drawbacks

ERP has