Enterprise Resource Planning (ERP) software suppliers come in
all shapes and sizes, with the vital
business process software available as a client server
application, a hosted ERP service or even via a
web-based portal.
What is ERP software?
ERP software has its roots in
the Nineties manufacturing industry, where earlier forms of the
applications were used for
manufacturing resource planning (MRP) and computer integrated
manufacturing (CIM).
However, ERP has grown to cover all core functions of a
business, regardless of its industry sector. As a result, both
private and
public sector organisations now use
ERP systems in some form or
other.
ERP applications tend to be modular in nature, sharing vital
business information which is held on a central database
repository, or repositories.
What does ERP software do?
ERP systems typically carry out financial and business planning
functions, which might formerly have been carried out by many
smaller standalone applications.
Examples of ERP system modules include: product lifecycle
management, supply chain management (for example purchasing,
manufacturing and distribution), warehouse management, customer
relationship management (CRM), sales order processing, online
sales, financials, human resources, and decision support
system.
Why use ERP software?
One major benefit of having a single modular
ERP system is that it can unite and link together multiple
processes and parts of the business,
making the business run more efficiently.
By
automating various functions, you can also benefit from having,
for example, good order tracking, from acceptance through to
fulfilment. In terms of the revenue cycle, you can track invoices
through to cash receipts.
ERP systems also centralise the data in one place, which can
eliminate the problem of synchronising changes between multiple
systems, and allows business managers to get a more
accurate view of the business’s information.
Having a single data repository can also lower the risk of
losing sensitive data, if you use appropriate data security and
authorisation.
What are the drawbacks of ERP systems?
ERP systems can prove to be complex and difficult to customise,
keeping in mind the actual complexities and idiosyncrasies of each
individual business itself.
Many firms
fail to adequately invest in ongoing training for the involved
IT personnel, and there is often a lack of corporate policy to
protect the integrity of the data in the ERP systems and the ways
in which it is used.
Business processes frequently have to be re-engineered to fit
the new
ERP system, and this can lead to problems with processes and
staff.
Also,
ERP systems can be very expensive. This has led to a newer
breed of simpler
ERP systems for smaller enterprises which carry a lower cost,
and many established ERP vendors now offer managed ERP services,
offered over the web.
Finally, the fact that ERP systems centralise the data in one
place can increase the risk of loss of sensitive information in the
event of a security breach.
Popular ERP Vendors
- Microsoft Dynamics
The Microsoft Dynamics ERP suite includes Microsoft Dynamics AX, an
accounting and finance, HR and CRM tool; Microsoft Dynamics GP, a
mid-market accounting suite; and Microsoft Dynamics NAV and
Microsoft Dynamics SL, both SME ERP platform.
-
Oracle e-Business Suite
A modular ERP platform, the Oracle e-Business Suite has many
elements including Oracle CRM, Oracle Financials, Oracle Logistics,
Oracle Order Management and Oracle Warehouse Management Systems.
The software makes use of the Oracle database.
-
SAGE
Sage Line 500 and Sage 1000 are the cornerstone ERP solutions for
thousands of UK businesses. Developed for the UK mid-market from
day one, the Sage Line 500 and Sage 1000 Suites offer customers a
broad range of capabilities including CRM, HR, Payroll and Business
Intelligence.
-
SAP Business One
Aimed at SMEs, SAP Business One contains over a dozen core modules,
such as Financials, Sales Opportunities, Purchasing Banking, Human
Resources, E-commerce and WebCRM.
- Infor Global
Solutions
Infor is a large business software provider which has several ERP
suites, such as Infor ERP LN, Infor ERP SyteLine, Infor ERP VISUAL,
Infor ERP Adage and Infor ERP LX. They are built on an open,
flexible, service-oriented architecture (SOA) with web-based user
interfaces.
-
NetERP from NetSuite
NetSuite supplies on-demand, integrated business management
software suites aimed at mid-market enterprises and divisions of
large companies. It offers hosted accounting, CRM, ERP, e-commerce
and web site development software.
- Lawson Software
Lawson merged with business software firm Intentia International in
2006, to offer mid-market business an alternative to larger ERP
vendors. The vendor’s ERP packages are Lawson S3 (broadly for
service firms) and Lawson M3 (broadly for manufacturers and
distributors.