Major components of ERP Systems
Components of Manufacturing :-
Engineering, Bills of Material, Scheduling, Capacity, Workflow Management, Quality Control, Cost Management, Manufacturing Process, Manufacturing Projects, Manufacturing Flow
Components of Supply Chain Management :-
Supply Chain Planning, Inventory, Purchasing, Order Entry, Product Configuration, Claim Processing, Supplier Scheduling, Material Management
Components of Financials Resource Management :-
General Ledger, Cash Management, Accounts Payable, Accounts Receivable, Asset Management, Time and Expense, Financial Reporting, projects
Major Functional Components of Human Resources Management :-
Human Resources, Payroll, Training, Time & Attendance, Benefits
Customer Relationship Management Components :-
Sales and Marketing, Commissions, Service, Customer Contact and Call Center support
ERP Advantages and Disadvantages
Advantages of Implementation of an ERP system :
- Reduced redundancy in entering data
- ERP system provides the real time information all needs of the organization in a single system.
- ERP Allow everyone to access same source and share same source of information
- ERP allow to access, update instantly and saves lot of time.
- Integration among different functional areas to ensure proper communication, productivity and efficiency
- The Accounting for all of these tasks, tracking the Revenue, Cost and Profit on a granular level.
- Allow standardization of business processes and enterprise’s information
Disadvantages of ERP Systems :-
The disadvantages of ERP systems are as follows :-
- Takes a lot of effort and time and requires a lot of training
- Customization of the ERP software is limited. Some customization may involve changing of the ERP software structure which is usually not allowed.
- ERP systems can be very expensive to install.
- ERP Systems centralize the data in one place and this can increase the risk of loss of sensitive information in the event of a security violation.
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