Enterprise resource planning (ERP) system is enterprise software that allows organizations to integrate their business operations and improve productivity. It is an independent software application aimed at increasing the efficiency of various business functions.
The main function of enterprise resource planning software is the integration of various business processes, such as accounting, marketing, sales, and human resource management.
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Information related to business processes is extracted and analyzed to facilitate the decision-making process. An integrated information system is shared across an enterprise, meaning that all departments are given access to a central server system to obtain the information they need to perform their respective tasks.
In this way, an ERP system makes it possible for a company to eliminate errors and save time. For example, an inspector food inspector can quickly enter and process inspection data while having access to an ERP system.
It was the rapid development of communication methods that made it possible for organizations to communicate effectively with external parties. Some benefits of ERP systems are:
- It supplies information and data critical to high-level management. By doing this, it eases the decision-making process.
- This eliminates the hardness factor and makes a business more receptive to changes.
- In other words, a business can perform its tasks with greater flexibility.
- ERP systems make data more secure, allowing companies to ensure that critical data is not compromised.