Enterprise Resource Planning

Flashcards covering the key concepts of Enterprise Resource Planning (ERP) as discussed in the lecture.

Enterprise Resource Planning (ERP)

Management software that integrates information from all business departments into a single IT-based system to enable faster decision making.

Supply Chain Management

One goal of ERP is to assess relevant information regarding supply chain management.

Production

ERP helps in assessing capacity and output in production, which can be used by marketing.

Customer Relations Management

Marketing can input customer complaints (operations will use) into the ERP system for better CRM.

Minimize Operational Costs & Resource Requirement

ERP helps to minimize operational costs and resource agent requirement.

Inventory Control

ERP matches incoming orders with unsold stock, and finance is automatically released. JIT can be used.

Costing

ERP allows for exact cost calculation of each order and unit, and capacity utilization can be easily set.

Delivery Times & Resources

ERP informs the business about delivery times and resources needed.

Organization of Funds

ERP facilitates easier organization of funds.

Cost of Setup (ERP)

A disadvantage of ERP is the cost of setup and customization by a specialist.

Information Dependency (ERP)

ERP is only as good as the information fed into it and requires accurate info from suppliers & customers.

Extensive Training (ERP)

A disadvantage of ERP is the extensive training required for management and staff.