Enterprise Resource Planning

Over the past decade, two major innovations have transformed the way companies build and operate information systems: the Internet and its associated e-commerce technologies, and Enterprise Resource Planning (ERP) systems.

ERP is an integrated transaction-processing system that handles businesses' internal information. The great benefit of ERP is integration. If you add a new sales order to the system, everything related to the order also changes, including sales commissions, inventory requirements, manufacturing schedules and the balance sheet. With ERP-enabled integration, all employees can use the same information and business processes and get the same results when the system is queried.

ERP Systems comprise of a set of commercial software packages that promise the seamless integration of all the information flowing through company - financial, accounting, human resources, supply chain and customer information.

ERP systems allow companies to understand their business better. With ERP software, companies can standardize business processes and enact best practices more easily. By creating more efficient processes, companies can concentrate their efforts on serving their customers and maximizing profit.

Integration with ERP has never been easy to achieve, but it is proving worth the trouble. The integration allows firms to offer services such as available-to-promise inventory, which means that customers don not order something that cannot be delivered in time. If procurement systems are not integrated with sales, manufacturing and logistical systems, available-to-promise is just a tantalizing mirage.

Industry analysts predict that every major manufacturing company will buy ERP software, which ranges in cost -- with maintenance and training -- from hundreds of thousands of dollars for a small company to millions for a large company. AMR Research of Boston says consolidation among the major players will continue and intensify. ERP vendors are expected to put more effort into e-commerce, CRM and SCM initiatives, with leaders redirecting between 50% and 75% of their R&D budget to these projects.

History

The focus of manufacturing systems in the 1960's was on Inventory Control. Most software packages then (usually custom packages) were designed to handle inventory based on traditional inventory concepts. In the 1970's the focus shifted to MRP (Material Requirement Planning) systems that translated the Master Schedule built for the end items into time-phased net requirements for the sub-assemblies, components and raw materials planning and procurement.

In the 1980's the concept of MRP-II (an extension of MRP) evolved to Shop Floor and Distribution Management activities. In the early 1990's, MRP-II was further extended to cover areas like Engineering, Finance, Human Resources, Projects Management, etc., i.e. the complete gamut of activities within any business enterprise. Hence, the term ERP (Enterprise Resource Planning) was coined.

Definition

Enterprise Resource Planning is associated with large, integrated, multi-module business information software systems that address day-to-day business transaction processing and resource planning functions. Fundamentally, ERP systems integrate the different processes necessary in a business into a centralized pool that facilitates data sharing and eliminates redundancy.

ERP is an industry term for integrated, multi-module application software packages that are designed to serve and support multiple business functions. An ERP system can include software for manufacturing, order entry, accounts receivable and payable, general ledger, purchasing, warehousing, transportation and human resources. Evolving out of the manufacturing industry, ERP implies the use of packaged software rather than proprietary software written by or for one customer. ERP modules may be able to interface with an organization's own proprietary software with varying degrees of effort, and, depending on the software, ERP modules may be alterable via the vendor's proprietary tools as well as proprietary or standard programming languages.

How ERP Works

ERP integrates data from different corporate divisions by providing a single repository (logically) for the company's data. The greatest advantage of using these systems is the immense transparency these systems offer to corporate functionality. The ERP package incorporates powerful processing systems that then provide information from this data generating various reports for analysis at various levels of the organization. It can provide as detailed reports as the person wants depending on his authority to access such information or abstract the information to provide insightful evaluations of the functioning of the organization.

The tight packaging of various aspects of the company within a single family of software modules provides efficient and easy exchange of data. It enforces all users of the system adhere to the corporate policies which are implemented into the ERP system.

Finally, the organization and maintenance of the IT infrastructure within the corporate becomes easier. The standard ERP systems run on client/server models where workstations can be connected to powerful server systems that run the ERP package. Also, functions such as maintaining data integrity and back up of data become easier.

Advantages

Knowledge Management systems are best suited for:

• Forces the use of "best practices" within the enterprise due to automation of business processes
• Information is entered only once into the system - Reduces redundant information entry and processing cycles
• Realizes on-line/real time information throughout all the functional areas of an organization
• Enables data standardization and accuracy across the enterprise
• Provides elaborate analysis and reporting used for streamlining business process, performance monitoring and planning
• Standard ERP systems support robust security modules that force users to authenticate themselves to the system. The system enforces strict access rules to maintain the integrity and confidentiality of data present in the system

Axxonet Vision - ERP Packages for SMEs

ERP is the finest expression of the inseparability of InfoTech and business. As an enabling technology, as well as an effective managerial tool, ERP has made it possible for many organizations worldwide to integrate themselves at all levels and, make report ability a given, rather than an imposition. With the market for ERP packages burgeoning, it is necessary for the industry to understand what the whole issue means, who the players in the arena are and the implications of the different features available on ERP.

In today's industry, efficiency is of utmost importance. Efficiency equates to competitiveness, improved customer satisfaction, and an increase in the profit line of a company. What makes a company competitive is its unique internal business processes as compared to that of its competitors.

The advances in the computer industry have helped build a host of packages that provide features that help improve and enhance these internal business processes. These packages have been available in different forms for small, medium and large companies. Often, products available off the shelf force organizations to mold their processes to the features available in the products, rather than have a package that molds itself around the organization. Products such as SAP and BAAN have captured the large markets by providing a best practices, highly customizable platform around which we can mould our business practices and processes, unfortunately these packages cost millions of dollars.

The small and medium sized organizations have been neglected in this segment. Often smaller organizations fulfill their automation needs by procuring individual packages that provide islands of automation. Thus, a point of sales system may not always integrate into the inventory system, or the accounting system. Customer, Vendor, and Payroll management are often neglected in packages, and have to be managed externally. Moreover, small businesses have unique practices that are essential for their survival in the extremely competitive business scenario.

Through IOS, Axxonet Solutions has tried to address these issues and provide a consolidated system that can manage almost all the needs of an organization, while being flexible enough to mold and enhance according to the customers needs.

The IOS system provides small and medium organizations the computing power and management information that was until recently available only to large corporations. Organizations' core strengths are its products and services. A package like IOS helps bind and enhance the functioning of different parts in a company with the final objective of forwarding the products and services.

Features

A summary of some important modules in IOS is listed below:

WorkFlow Management Systems

• Vendor Management
• Purchase Order Generation
• Purchase and Sales preference
• Job Order creation
• Production planning
• Scheduling
• Tracking orders
• Customer Relationship Management
• Shipments

Accounting

Payroll

Security

• Login System (Username/Password)
• Categorization into Work-Groups
• Robust Module-Based system
• Access List Support
• Group/User based permissions
• Secure Data Export/Import Interfaces

* Multiple Operating System Platforms and Database Platforms Supported

For a detailed product catalog or for enquiries please email the following address: ios@axxonet.com