ESSAYS ON TECHNOLOGY

 

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Essay on Pros and Cons of ERP Systems

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Essay on Pros and Cons of ERP Systems

Today, the role of the enterprise view is to ensure that the appropriate levels and types of integration are appropriate and found within an enterprise resource planning (ERP).

Fundamentally, enterprise resource planning is real-time manufacturing software that incorporates the entire supply chain from sales and ordering to production, inventory, and distribution (Alter, S. 1999). It comes under the umbrella of the CIM concept set forth previously. Since companies are implementing client/server systems that manage the entire supply chain (from the time a product order comes in until the moment it is delivered), ERP systems represent an integrated set of applications modules that ties together a host of functions. As such, they are highly integrated application suites that support many processes; including sales forecasting, order management, purchasing, production scheduling, inventory management, distribution, scheduling, engineering, maintenance, and accounting. These systems become the nerve center of a manufacturer. Overall, enterprise resource planning systems have the capability of providing competitive advantage through lower costs and faster response time.

The focus of enterprise resource planning is to facilitate the exchange of manufacturing and related information and knowledge throughout a company. Software vendors usually sell it in suites containing modules, such as purchasing, point of sale, manufacturing, inventory, job costing, bill-of-materials, payroll, and audit trail. If installed properly, typical results indicate that companies can fill and ship customer orders within 48 hours down from several days as well as reduce inventory by about 25 percent (Parr, A., Shanks, and G. 2000). In essence, ERP can speed up business processes, reduce costs, increase selling opportunities, and improve quality and customer satisfaction, and measure results continuously.

  Currently, the major ERP vendors, Baan, J. D. Edwards, Oracle, PeopleSoft, and SAP have developed portals as easy-to-use gateways to ERP applications and data for professionals supporting E-business operations. Several vendors have set up on-line marketplaces where businesses can purchase goods. Also, they have added supply chain and Web transactions software to provide across-the-board E-business capabilities......................

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