Components of ERP

The following components may be identified as the primary components (sub-system) of ERP:

1. Human Resources
2. Sales and Marketing
3. Accounts Payable/Receivable
4. Master Scheduling
5. Inventory/Material Requirement Planning
6. Cost Accounting
7. Bills of Materials
8. Capacity Requirement Planning
9. Purchasing
10. Warehouse Management
11. Service & Maintenance
12. Logistics
13. Plant Maintenance
14.  Project Management
15. Asset Management and
16. Financial Accounting etc.

Features of ERP

The important features of ERP are:

1. Integrated
2. Customer Service
3. Information Sharing
4. Project Management
5. E-Commerce Facilities
6. Business Decision Making Solutions
7. Futuristic
8. Accommodating Variety
9. Supply Chain Management
10. Resource Management

Benefits of ERP

The probable benefits from an ERP package are stated below:

1. Reduction of lead time
2. Integrated data management
3. Better inventory management
4. Reduction of cycle time
5. Operational cost savings
6. Better customer satisfaction
7. Improved vender performance
8. Improved resource utilization
9. Improved information accuracy
10. Improved decision-making capability
11. Faster reactions to changing business demands
12. Build in best practices

Critical Factors for Successful ERP implementation:

1. It needs high level of sponsor commitment.
2. It needs strong process orientation in terms of time.
3. It needs dedicated project team from the user.
4. It needs strong support for changes to occur.
5. It needs quick decision making processes and
6. It needs empowered team.

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