Outsource Enterprise Resource Planning Services
Organizational strategy for integrating production and operations, labor management, financial management and asset management, focused on continuous balancing and optimization of enterprise resources through a specialized integrated software package providing a common data and process model for all areas of activity. ERP-system – a specific software package that implements the ERP strategy.
More and more enterprises of different scales around the world are striving to introduce into their work a powerful management tool known as the ERP-system. Its use is designed to establish effective control and planning of all strategically important business processes for the organization, to optimize the functioning of the main production and auxiliary facilities.
The concept of ERP and ERP-system
Business strategy ERP (Enterprise Resource Planning) is the integration of all departments and processes of the organization: production facilities, financial, personnel and client profile departments and many others. Such an association is primarily aimed at optimizing the distribution of various resources within the enterprise.
If earlier it was purely a marketing concept, today the ERP-system is most often understood as a class of specialized software. In the broadest sense, it is a methodology for planning and managing all the resources of an enterprise. Historically, the ERP strategy was formed on the basis of its predecessors:
Purpose of ERP-system in the enterprise
In order to decide on fundamental changes in the activities of its company related to the introduction of an information management system and the implementation of a new business strategy, management must clearly understand the full necessity of this step, which should be expressed in the following key points:
-Increase the transparency of business processes.
-Solving problems with ordering and finding the right information.
-Increase the reliability and relevance of data.
-Increase the speed of workflow between departments.
-Organization of a common information space between the head office and remote branches.
-Reducing the time for filling out the documentation and getting rid of possible errors.
-Increase the speed of decision-making at all levels.
ERP-system provides an increase in the competitiveness of the facility not only through the introduction of more efficient business processes into its work. Its use should also lead to a reduction in the overall costs of the enterprise. Advanced planning, modeling and analysis tools help to optimize the resources of production activities, the financial sector, as well as the work of warehouse, transport and other units.
Main features of work
In different companies, even dealing with the same business, all business processes can proceed in completely different ways. The standardized scheme of work that the enterprise information management system offers can be significantly different from the one used here before. For this reason, treating it only as a software product is fundamentally wrong, since its implementation requires large internal changes from the company in the form of reorganizing existing business processes.
Functionality of ERP-class systems
Speaking of functions, one should not forget that any ERP-class product is an enterprise management system as a whole. The range of its capabilities in the first place will depend on the scale and features of the operation of the object for which it is used. Consider the classical set of functions:
Maintenance of design and technological specifications of the products or services performed to determine the number of required materials and labor costs.
Drawing up production plans.
Planning and management of the technical capacities of the enterprise in different approaches: from individual units to shop and production associations.
-Operational accounting, financial, managerial, tax accounting and controlling.
-Management of the assets of the enterprise, including fixed assets, securities, bank accounts and so on.
-Comprehensive planning of the financial resources of the enterprise and monitoring its results.
Formation of planned indicators of required volumes of materials, raw materials, parts, components in accordance with production plans.
Supply and sales management: accounting of contractors, maintenance of the register of contracts, supply chain management, implementation of warehouse planning and accounting.
-Managing the recruitment process.
-Operational personnel and time attendance, maintaining the staffing table, calculating salaries.
-Labor force planning.
-Marketing and Advertising
Keeping sales plans.
Management of pricing on various types of the market with the purpose of formation of the adequate general strategy of the enterprise, a transparent policy of calculation of cost of the goods: the account of discounts and special conditions of sales.
Planning and control of ongoing advertising and marketing activities.
Providing a wide choice of standardized accounting, financial and management reporting forms, as well as a flexible mechanism for creating custom ones.
Drawing up a common strategy: phased planning of the necessary time, material, financial and human resources for successful implementation.
Monitoring of the main indicators of the project.