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ERP stands for Enterprise Resource Planning. ERP is a way to integrate the data and processes of
an organization into one single system.
Usually ERP systems will have many components including
hardware and software, in order to achieve integration, most ERP systems use a unified database
to store data for various functions found throughout the organization.
The term ERP originally referred to how a large organization planned to use organizational wide
resources.
In fact, ERP systems are used
in almost any type of organization - large or small.
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An ideal ERP system is when a single database is utilized and contains all data for various
software modules. These software modules can include:
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Some of the functions include; engineering, capacity, workflow management, quality control,
bills of material, manufacturing process, etc...
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Accounts payable, accounts receivable, fixed assets, general ledger and cash management, etc...
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Benefits, training, payroll, time and attendance, etc...
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Inventory, supply chain planning, supplier scheduling, claim processing, order entry, purchasing, etc...
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Costing, billing, activity management, time and expense, etc...
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sales and marketing, service, commissions, customer contact, calls center support, etc...
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Usually this is a module that can be accessed by an organizations customers, suppliers and employees.
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