ERP System Information for Manufacturing Companies

Enterprise Resource Planning (ERP) is an integrated management system used by businesses to collect, store, interpret, and manage information. For manufacturing companies, selecting the right ERP vendor is crucial to streamline business processes and respond to external market conditions. While there are benefits to implementing an ERP system, there are also drawbacks such as increased costs and the need for employee training. However, with the right ERP system in place, manufacturing companies can effectively grow and succeed in the market.

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ERP SYSTEM
Enterprise Resource Planning is an integrated management
system of core business process that is used by the business to
collect, saves, store, interpret and manage information for the
business. The ERP system software helps the business
tracking different resources of the business and implying them
in the right direction for the growth of the company. This type
of system organizes all the business functions of the company
in such a way that efficiency and effectiveness is achieved for
the company. The ERP system architecture helps the business
in implementing infrastructure for the business that will help
them to analyse the functional as well as system requirement
of the business. The ERP system architecture comprises of
ERP modules, ERP hardware, software, database and
network. ERP modules are the system that are designed for
organizing specific business functions of an organization.
Like, Supply Chain Management, Human
Resource Management etc. form a part of
the ERP module. Further, the fact should
be noted that it is very important for the
business to initiate infrastructure of ERP
on the basis of requirement of the
company. Both hardware and software of
the company should support and add
advantage to the ERP system installed in
an organization. So, the fact should be
noted that ERP in the current environment
plays a huge role in leading the company
towards its growth by organizing the
internal activities of the company.
ERP FOR MANUFACTURING COMPANY
ERP System
Information
ERP is one solution for every business problem

BENEFITS AND DRAWBACKS
Like everything has its benefits, similarly
drawbacks are also attached to it. So, the
installation of ERP system in the business
helps the company in optimizing the
business process and timely sharing all the
information within the organization on
time. This system will also help the
company in eliminating unnecessary
operations and data which will ultimately
reduce the cost of company and time as
well. With the help of ERP system, the
employees would be able to work on
different and more important things than
regular repetitive work. Thus, summarising,
it can be said that this system will helps the
company in becoming more competitive in
the external environment.
Further, talking about drawbacks, it should
be noted that installation of ERP system in
the business increases the costs for the
company. ERP consultants are very
expensive in the business as they take
almost 60% of the budget from the
company. The success of ERP majorly
depends upon the efficiency of the
workforce and the ways in which they
would handle the system. The company
needs to provide training to the employees
to adopt ERP system in their working.
Lastly, it should be noted that direct as well
as indirect costs of the company increase
with the implementation of ERP system in
the business.
FUTURE GROWTH
With the help of ERP system in the
organization, the management can
effectively grow and succeed in the market.
The ERP system will help the company in
creating block chain so as to initiate
function effectively without facing any
barrier in external market. By using this
type of system, the supply chain
management system will become effective
and company would be able to easily
calculate the raw material used and wasted
by the employees. Thus it can be said that
this system will help the manufacturing
company to grow easily by expanding their
scope of business as well.
REQUIREMENT OF BUSINESS
Looking at our manufacturing organization based in Australia, the company
needs to make use of system that is efficient and competitive in the market.
Installation of ERP in the system will streamline the business process with great
adaptability. This process will help the company to make use of resources that left
idle and adopt innovative technologies present in the external environment.
Further, this system will also help the manufacturing company to respond to the
external market conditions quickly. The ERP system is required by the business
because it will reduce the operational costs by saving the time and energy of the
labour and employing it into other activities.
TYPES OF ERP
There are different types of ERP present in the external environment that are
useful for the manufacturing companies. Some of them are mentioned below:
 Epicor ERP
 Oracle ERP Cloud (Enterprise)
 SAP Business All in One
 SAGE Business Cloud
 Enterprise IQ
VENDOR SELECTION
Vendor selection is one of the most important process of the installation of ERP
software for the business. If the company by mistake selected a wrong vendor for
the business then they can face various issues in the upcoming years. Selection of
right type of vendor will make the business more strong. In order to select the right
type of vendor for the business, the company should initially develop goals and
objective for ERP implementation in the business. Further, the management should
also appoint an ERP selection team that should analyse the key software present in
the environments that are supporting various manufacturing companies. The
company should also focus on the key functions of the company for which they
require the ERP system. The system should operate around these key functions
only. Views and opinions of the existing ERP users should analysed in the
environment and price of the software should be looked after. The vendor should
be selected based on the budget of the company and the services that they offer in
the environment. The vendor selected should provide efficient after sale service in
order to adequately help the company to install the software and function it
properly as well.
ERP AND E-BUSINESS
It is important to understand that there is a huge difference between ERP and E-
business strategies of a company. The e-business strategies are implied in the
company to increase the sales volume by providing the products and services
online. Whereas, ERP system is implied in the business to manage the internal
functions of the company and organize the activities effectively. The e-business
strategies link the company with the external partners whereas the ERP system
integrates the functions of the company to collectively build an effective enterprise
application.