Enterprise software is sometimes known as ERP, but that acronym can be kind of deceiving. It doesn’t do much in the way of planning, and “resources” is a catch-all term that doesn’t mean all that much. Enterprise is at the core of the software; it tries to integrate all of a business’ functions and departments into a single system that can fill all of those departments’ needs.
It can be hard to put together a single program that equally serves the needs of those in the warehouse, in the HR department, and in finance. Each department usually has an individual computer system, which is set up for the way it operates. Enterprise software combines all systems into one program that runs from one database, so all of a company’s departments can communicate and share information.
The integrated approach can have tremendous benefits, if the software is installed in the right way. For instance, if a customer orders a product, their order begins as a paper chase from one part of the company to another, often being re-entered into many different computer systems. All that travel causes delays, and all the data re-entry can carry the potential for errors. There’s no way for the finance department to access the warehouse’s computers to tell whether the order has been shipped, leading to a lack of answers and frustrated customers.
Enterprise software eliminates the need for separate systems in manufacturing, warehouses, HR and finance, replacing them with a single program that has modules roughly equivalent to the old systems. Most ERP software is adaptable enough that you can select the modules you need, rather than paying for those you don’t. The highest value of enterprise software is in the way it handles order fulfilment; this is why it’s commonly called back office software.
ERP doesn’t handle the selling process, but most vendors of the software have CRM modules. Rather, it takes the customer’s order and provides a way for the company to fulfil it automatically. When a customer service agent enters an order into the system, they will be able to access all the information necessary to fill the order (order history from the finance module, inventory records from the warehouse, and the shipping schedule from logistics).
A comprehensive nature is the primary characteristic of enterprise software; simply put, this means that it can do a variety of jobs within a company. ERP can generate different types of data without worker intervention, and many systems follow an open architecture, which means any component can be removed without causing harm to other parts.
Information and SAP events are visible to, and updatable by workers in all departments. When a particular department finishes an order, the software routes it to the next department. For easy order tracking, workers need only to log into the system and pinpoint it. With ERP software, customers get their orders faster and with a minimum of errors, and the systems can offer many of the same benefits to other business processes.
This post was written by James Harper on behalf of UK & Ireland SAP User Group who arrange SAP events to help users get the most out of enterprise software.
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