How an Enterprise Resource Planning (ERP) System Works

7/2/19 10:30 AM

If your company is falling behind in terms of meeting production schedules and is leading to other problems within the manufacturing process such as overstock or high costs, then an Enterprise Resource Planning (ERP) system may be a viable option for you.

How an Enterprise Resource Planning (ERP) System Works

Enterprise Resource Planning (ERP) software is an information system that is able to manage various areas of your company such as the products, customers, suppliers, employees, production facility, and more. An ERP system oversees and controls the resources within a manufacturing facility, in which it functions as a comprehensive commercial package that is designed to support and integrate organizational processes across functional boundaries. With the wide range of functions and processes that an ERP system oversees, it is rather complex as to how ERP actually works. 

How an ERP System Works 

With a properly implemented ERP system, everything from order processing to user authentication may be centrally managed and automated. Below explains some of the business problems that an ERP system solves, technology behind ERP systems, and the implementation and cost.

  • How ERP Solves Business Issues - The modules within an ERP system unify the operations as a whole. Barriers that existed between departments are quickly eliminated and corporate data becomes easily accessible. The entire purpose of an ERP system is to automate the logistical process of your everyday operations within your business. A good example of this would be how an ERP facilitates a multi-step process like order entry. When the sales representative takes orders from consumers, your ERP system will then allow them to access credit ratings, order history, inventory, etc. This will eliminate the necessity to involve the warehouse or finance department. 
  • Technology Behind ERP Systems - The IT infrastructure needed to support an ERP system will need to be robust and diverse with the many components that are needed to interact seamlessly. The ERP software in itself will need to be deployed on an application service, which provides the runtime services and connections to the back-end database. The application service along with other components will fall under the category of middleware. There is a substantial amount of technology behind ERP systems, in which it makes supporting infrastructure rather complex. 
  • Implementation and Cost - One of the main concerns of ERP systems consist of the implementation time and cost. These are extremely important factors to consider when planning a corporate ERP system. Ultimately, the implementation time and cost will all depend on the size and scope of your project and production process. Full implementation may take anywhere from years to several months to even a few years, and the cost may also be difficult to estimate - with it being anywhere from thousands to even a few million. 

A software that can easily be implemented with an Enterprise Resource Planning (ERP) software is PlanetTogether’s Advanced Planning and Scheduling Software (APS). PlanetTogether’s APS software is being implemented in manufacturing facilities around the globe and will boost areas within production through waste reduction, cost reduction, and profit increase as well. Advanced Planning and Scheduling Software (APS) has become a must for manufacturing facilities that are in need of operational efficiency increase as well as attempting to maintain a competitive edge within the industry. 

Advanced Planning and Scheduling Software 

Advanced Planning and Scheduling (APS) software has become a must for modern-day manufacturing operations due to customer demand for increased product mix and fast delivery combined with downward cost pressures. APS can be quickly integrated with a ERP/MRP software to fill gaps where these system lack planning and scheduling flexibility and accuracy. Advanced Planning and Scheduling (APS) helps planners save time while providing greater agility in updating ever-changing priorities, production schedules, and inventory plans.

  • Create optimized schedules balancing production efficiency and delivery performance
  • Maximize output on bottleneck resources to increase revenue
  • Synchronize supply with demand to reduce inventories
  • Provide company-wide visibility to capacity
  • Enable scenario data-driven decision making

Implementation of Advanced Planning and Scheduling (APS) software will take your manufacturing operations to the next level of production efficiency, taking advantage of the operational data you already have in your ERP.

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Topics: enterprise resource planning


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