What Is Enterprise Resource Planning (ERP)
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What is Enterprise Resource planning (ERP)

Though majority of the business people know what an ERP is, there are also some people who do not have an idea what an ERP means or how it works. One of them is my old classmate Anas, who most of the time travels all over the India, part of his works.

I met him during my last year’s vacation in one of the restaurants in our home town VELLORA. In fact, it took more time for me to recognize him than he took to recognize me. He invited me to join for a snack session, which I could not resist.

“What are doing now?” he asked me after settling down in a corner.

“Working in Saudi Arabia as an Inventory Controller,” I said and sat on the chair opposite him. “What about your old affair?” Out of curiosity I asked.

His face wrinkled in indignation. “That doesn’t love at all, just squirrel fever… Just…”
A storm of emotions…! Anas grimaced. “Man sees a pretty skirt and calls it loves. Most women folk aren’t much smarter. Give more credence to butterflies than friendship. Real loves isn’t that way. It’s more like a tree or plant or something’.”
“How’s that..?”
“Grows if you take mind to it, but it takes work and sacrifices. No one stand back of a neglected tree and watch it die and say, “Guess that tree just isn’t supposed to live.’
Only a fool would talk like that. But people do it all the time with their loves.”

“Sorry…” he said and asked “What you mean by Inventory Controller?”

“Inventory is the stock of any item or resource used in an organization. I.e. Inventory is the result of several processes and Inventory has been divided by four types. 1. Raw material 2. Work-in-progress 3. Maintenance/repair/operating supply 4. Finished goods. Keeping it accurate, understanding how it can get inaccurate and taking the appropriate steps to correct and prevent its inaccuracy means understanding all the steps before and after. The processes that create Inventory and the ones that depend upon it, as I told you I am working in a retail industry obviously my inventory are the finished goods. And we are using Oracle 11i enterprise ERP solution.”
I said and turn to waiter to order the snacks.

“ERP solution…? With which mixture this solution used for?” he asked, and ordered a pizza for him and a sandwich for me.

“It is not the solution what you are referring,” I said and explained, “It is a computer software solution for business purpose.

“I see” he said and continued, “nowadays everyone does computer business. I never thought you are also doing the same thing. Which are the computers you sell? I am planning to buy 25 computers for our company should know the market rate” he said.

“Yes we are selling most of the brands; and its latest models but the ERP is a tool for business needs,” I said,

“What this ERP? Is it your company name?” he enquired, after finishing the pizza and searching in the menu for his next order.

“No, no, Our Company’s name is United Electronics Company. Widely known as ‘eXtra’ and we are the leader of the electronics retail business in the Kingdom and we are using Enterprise Resource Planning solution for our business needs.” I explained.

“What is the use of it?” he asked, after ordering cheese sandwich for him and nothing for me as I am yet to finish my first sandwich.

“An ERP solution will help streamline the functionality and technicality of a software solution in an organization,” I tried to be too formal in my explanation, though he has not been convinced fully.

“Can you be more specific, so that I can understand it and also can be used for me,” he said with showing little enthusiasm,

“Sure,” I said and went further with additional details, “ERP’s main goal is to integrate data and processes from all areas of an organization and unify it for easy access and work flow. ERP is usually accomplishing integration by creating one single database that employs multiple software modules providing different areas of an organization with various business functions. I.e. ERP is a business model framework for planning all of the resources of a business—starting with strategic planning and linking through to execution. Process disciplines are integral to successful ERP predictability, and management systems can provide accountability. ERP systems are the information technology tools or software for which some of these process links can become automated, with information shared across functional areas and business transactions efficiently processed.”

“This seems to be interesting,” he said with interest and insisted, “Explain more.”

“ERP systems can cover a wide range of functions and integrate them into one unified database. For example, functions such as Human Resources, Supply Chain Management, Customer Relations Management, Financials, Manufacturing functions and Warehouse Management functions were all once stand alone software applications, usually housed with their own database and network, today, they can all fit under one umbrella,” I stopped and looked at him.

“What type of businesses is best suited for ERP implementation,” he asked and finished his cheese sandwich.

“It suits any business,’ I said, “Manufacturing, Pharmaceutical, Chemical, Fleet Management, Modular Kitchen, Construction, Infrastructure, Retail”

“Seems interesting, tell me one more thing, how the staff will handle the new system? Do train them for that?” he asked and ordered a coffee for him and tea for me.

“Of course, after the implementation of the ERP system a live training session will be provided to the Key users by our application support team, and then the staffs and end users who handles it,” I said.

“Can I expect anything more from your ERP system?” He asked.

“Yes, What is more exciting about resource ERP is, it not only addresses all your day to day business challenges, you will also get a healthy return on your investment quickly and faster than you probably thought,” I said.

“That’s great. I think we must implement it soon,” he said and finished his coffee.

“Tell me Anas, when should you expand your business?” I asked.

“Very soon, first let me got the Bank loan,” he said and got up.

I too got up and walked away. My fully filled tea up was still staring at me

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