What is ERP:
The meaning of ERP is “Enterprise Resource Planning” means how you can do planning of your resources to get maximum output. There could be multiple resources which help you to get business. We will take resources one by one.
Human Resource or man power: It is a very important part of your business. Your’s employee has to clear about their work/Goals/KRAs and other side you have to ensure about their salary/incentives/training/development/motivation. To manage all these things, require a proper system through which you can easily do it.
Second Resource, we can take Material/Product/Services in which you deal. Proper management of material is very important to run business. For manufacturer, it is very crucial because they have to take care availability of raw material as per the order in present and in future. As a distributor or trader, you have to ensure proper availability of running item as well keep eye on non moving item also.
Third Resource, we can take Machines that helps you to get the things faster. For manufacturer it can be machines or tools which help in production and for distributors or traders it can be computer/printer/bar code scanner etc. as per the nature of business. You have to do service/update in a regular interval, otherwise either it stop working or performance will be slow, which directly hamper your business.
Fourth Resource,we can take Money. All knows about its importance and value. Proper management of ARAP (Account Receivable and Account Payable ensure your image/goodwill in market.
So, we saw there are multiple things a business has to do to run his business properly and we can not do all these things manually, we require a proper system to manage all these things.