What is Enterprise Resource Planning (ERP)Enterprise Resource Planning (ERP) is an end to end fully integrated e-enabled system that encompasses all basic functions of an organization. It is a system designed to chart out optimal utilization of an enterprise’s resources. It uses both computer software and hardware.
ERP systems can be used in manufacturing, inventory, distribution, logistics or accounting for a company. ERP can also assist in activities like sales, marketing, quality control and human resource management.
ICT (Information and Communication Technology) enablers like ERP enhance productivity and operational efficiency. Use of such systems reduces transaction and coordination costs. It brings about standardization and has low maintenance compared to other stand alone applications. ERP enables companies to transform its business processes to best practices.
ERP requires skilled workforce for its effective management and can be expensive to install. However, customized ERP solutions to match the need and financial capacity of the firms would help in increasing its acceptability among medium and small enterprises.
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