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Software for enterprise resource planning (ERP) can streamline and improve the efficiency of any business, large or small. One of the means in which this is done by standardizing processes through all departments of the company. Whether the processes in question are accounts payable, payroll, inventory, purchasing or sales, speed and efficiency will improve through a fully integrated ERP software system.

ERP at a Glance

Enterprise resource planning was once used only by large corporations because it was difficult to implement and expensive. Today, the climate for business software has changed. Small and mid-size companies are implementing ERP software packages at affordable prices. Businesses that cannot afford hardware and a full-time IT staff can now implement an ERP system with nothing but standard desktop PCs and laptops connected to the cloud.

An ERP system consists of a base package and series of optional modules that depend on the needs of the business. All the modules are fully integrated, so there is no more makeshift conversion of information or the need to have processors input everything twice for different software used by different departments within the company.

ERP Processing Walkthrough

ERP processing creates fluidity throughout all business operations. The following is an example of ERP-streamlined processing for a product manufacturer.

Processing starts with sales. Sales personnel can be organized and scheduled through ERP software. The salespeople then input sales orders into the ERP system, creating a record that can be accessed by various other modules. During the creation of the sales order, the system can access the inventory module to provide stock and location information. Delivery can be scheduled through the same system, as well as customer billing and payments.

In production, materials required to meet sales needs are pulled from sales data and sent to purchasing. Production increases stock of finished product and decreases raw materials, all of which can be seen by those who require the information in their department.

Processing for purchasing begins with vendor selection and moves through to purchase order creation. Estimated delivery times are available, and when goods are received, inventory is increased. Invoices are then made available for accounts payable.

Processing then moves to accounting. Accounts payable and accounts receivable are all processed through the same system using the information that has previously been input into the ERP system.

In this way, an entire business can be organized and run through a single software system.