ERP Software

An ERP (Enterprise Resource Planning) system is a type of manufacturing software that combines all aspects of the company’s production into one, easy to use, database.1 ERP software is able to integrate many different applications into one system so that production runs smoother and is easier to manage as each area of a company’s operation maintained through one common processing program. ERP can run and maintain several aspects of a company’s operation such as logging orders, distribution, and total revenue earned as well as inner-company networking functions like office scheduling and payroll disbursement.

ERP software is popular because it is very similar to office software commonly used today, which is easy to use without much formal training.2 Some companies may question the need to implement an ERP system since there is already software that can do all the things ERP software can and in the same basic format. The reason ERP systems are so valuable is its innate ability to combine all operations of a company into one formatted database. This cuts out the hassle of installing separate software for each function in pre and post-production as well as making sure said software is compatible with a company’s system.2

Another function of the ERP system is that it comes with automated translation so that when information is being transferred, the task of converting one application’s language to another in separate areas of operation becomes obsolete, saving time and confusion. This is also extremely useful when working with international clients as the ERP software is able to function in many languages and currencies as well as translate and convert them when needed.1 Companies especially like the fact that ERP is always up-to-date and is therefore able to report the exact current status of any part in operation.2 Because companies are constantly expanding and experimenting with advancing technology, the ERP software is able to do the same. The software comes with a basic format that can be customized and updated to meet the growing needs of a flourishing company. ERP software’s ability to advance with the company is extremely efficient in cost and labor.1

ERP software, because of its technological advancement, does not come cheap. Much like other manufacturing software it can range from tens to hundreds of thousands of dollars.2 For large companies this is a smart investment as it may be pricey upfront, but will soon after the purchase and implementation begin to pay for itself with more efficient operations and potential increases of overall revenue. There may be some hidden costs that come with the system such as tech support, but because it is run similarly to many systems already in use, in depth formal training is not much of an issue.2 One issue with ERP software deals with the employees themselves. Because the system practically runs itself and requires little manual operation, some jobs may become obsolete. So, loyal employees who once ran important system operations may face demotion or even termination due to the powerful nature of the ERP software.1 For most companies, however, downsizing only means less money spent and therefore is seen as a mere issue of morality rather than overall operational functionality.

For most companies, manufacturing software is a smart investment to make because it makes production more efficient by means of time, labor, and money spent, leaving a business with easier operations and greater revenue return.

1 www.erp.manufacturer-supplier.com
2 www.ibs.com