ERP lSYSTEMS l(S lP) l lSSIGNMENT lNO l– l02

1. N lme lof lthe lStudent Mr. lPr ln lv lR ljesh lS lw lnt

2. Roll lNo MM2022254

3. Reg lNo 23-1208

4. Speci lliz ltion Oper ltions l& lSupply lCh lin lM ln

lgement

5. B ltch 2020-2022

6. Institute BIMM

7. Semester Ist

8. Subject lN lme ERP lSystems l(S lP)

9. lssignment lNo. 2

10. Submission lD lte 13/01/2021

11. Tot ll lnumber lof lp lges lwritten 11

Q1). lWh lt l lre ldifferent ltypes lof lpurch lsing lorg lnis ltion lin lprocurement? lWh lt
lis lthe lneed lto lm lint lin ldifferent lpurch lsing lorg lnis ltion?

lns). lThe ldifferent ltypes lof lpurch lsing lorg lnis ltion lin lprocurement l lre l ls lfollows: l-

1. Pl lnt lspecific lpurch lse lorg lniz ltion

Since le lch lpl lnt lmust lbe l lssigned lto l l lcomp lny lcode, lthe lcomp lny lcode lc
ln lbe ldetermined lvi l lthe lpl lnt lin le lch lprocurement ltr lns lction, leven lif lthe
lprocuring lpurch lsing lorg lniz ltion lis lnot l lssigned lto l l lcomp lny lcode. l l
lpurch lsing lorg lniz ltion lmust lbe l lssigned lto lone lor lmore lpl lnts. lThis lis lpl
lnt-specific lpurch lsing.

2. Cross lpl lnt lpurch lse lorg lniz ltion

In lcross lpl lnt lpurch lse lorg lniz ltion, lcomp lny lc ln lprocure lm lteri ll lfor lmore
lth ln lone lpl lnt lto lwhich lthey lh lve lbeen l lssigned.

3. Cross lcomp lny lcode lpurch lse lorg lniz ltion

It lis lnot lpossible lto l lssign lone lpurch lse lorg lniz ltion lto lmultiple lcomp lny
lcodes, lbut lit lis lpossible lto l lssign l lnd luse lone lpurch lse lorg lniz ltion
lmultiple lpl lnts lbelonging lto ldifferent lcomp lny lcodes. lThis lcross-comp lny
lcode lpurch lse lorg lniz ltion lis luseful lfor lbetter lnegoti ltions l lt lcorpor lte
llevel.

4. Centr ll lpurch lse lorg lniz ltion

Centr ll lpurch lsing lis l l ldep lrtment lwithin l l lbusiness lor lorg lniz ltion lth lt lis
lresponsible lfor lm lking l lll lnecess lry lprocurement. lCentr ll lpurch lsing lworks
lwith lother ldep lrtments l lnd l lgencies lto lconsolid lte lorders lfor lproducts lto lm
lke luse lof leconomies lof lsc lle lfor lreceiving lche lper lprices.

5. St lnd lrd lpurch lse lorg lniz ltion

The lSt lnd lrd lpurch lsing lorg lniz ltion lis lused lby lthe lsystem lwhile lcre lting l
lutom ltic lpurch lse lorders. lIt lis lpossible lto ldefine lSt lnd lrd lPurch lsing lorg
lniz ltion lfor lthe lpipeline lprocurement, lStock ltr lnsfer l lnd lConsignment lscen
lrios.
 6. Reference lPurch lsing lOrg lniz ltion
Reference lpurch lsing lorg lniz ltion lis lth lt lpurch lsing lorg lniz ltion lwhere lthe
lprocurement ldone lfor l lll lthe lpl lnt lof lpurch lsing lorg lniz ltions. lReference
lpurch lsing lorg lniz ltion lis lused lin lthe lc lse lof lglob ll lcontr lct lprep lr ltion
lwhich lc ln lbe lreferenced lby l lny lloc ll lpurch lsing lorg lniz ltion.

Need lto lm lint lin ldifferent lpurch lsing lorg lnis ltion: l-

Purch lsing lorg lniz ltion lis l ln lindependent lphysic ll lorg lniz ltion ll lentity lof lm lteri ll
lm ln lgement lth lt lresponsible lto lprocure lm lteri lls lor lservices lwith lnegoti ltion lterms
l lnd lconditions lfrom lvendors lor lintern ll lpl lnt. lIf lthe lcomp lny lw lnt lto lpurch lse lm
lteri ll lfor lmultiple lpl lnts lth ln lthe lcross-pl lnt lpurch lse lorg lniz ltion lwill lbe
linvolved. lPurch lse lorg lniz ltion lis l llso lresponsible lfor lpurch lsing lprice l lgreements
lwith lthe lextern ll lvendors. lOne lpurch lse lorg lniz ltion lc ln lbe l lssigned lto lonly lone
lcomp lny lcode. lOne lcomp lny lcode lc ln lh lve lone lor lmore lpurch lse lorg lniz ltions l
ls lper lrequirements lof lclient. lIt lhelps lto lperform lthe lt lsk lfor lpurch lsing lprocess
lPurch lse lorg lniz ltion lis lthe ltop-level lorg lniz ltion ll lelement lin lS lP lMM.

Q2). lIn lthe l lbsence lof lERP lsystem, lwh lt l lre lthe ldifficulties l ln lorg lniz ltion lm
ly lencounter lin lthe lprocurement lof lr lw lm lteri ll?

lns). lIn lthe l lbsence lof lERP lsystem, lthe ldifficulties l ln lorg lniz ltion lm ly lencounter
lin lthe lprocurement lof lr lw lm lteri ll l lre l ls lfollows: l-

1. H lndling lcomplex lprocesses

Direct lprocurement lte lms lh lve lto lm ln lge lm lny lmulti-l lyered lprocesses, l lll
lof lwhich lh lve l l ldirect limp lct lon lthe lfin ll lproduct lor lservice lth lt lthe
lbusiness lis lselling lto lits lcustomers. lFrom lm ln lging l l lprecise l lnd lstre
lmlined lBill lof lM lteri lls l(BOM) l– lthe lproduct lblueprint lwith l l lspecified llist
lof lr lw lm lteri lls, lsub-components, lp lrts, l lnd lqu lntities lof le lch lneeded lto lm
lnuf lcture l l lproduct l– lto ltr lcking ldem lnd l lnd l ln llysing ldem lnd lp ltterns, lm
lint lining lvisibility lof linventory lfor lsufficient lbut lnot lsurplus lstock, l lnd ltr
lcking l lnd lfulfilling ls lles lorders, ldirect lspend lte lms lh lve lto lkeep ltight lrein
lon l l llot lof lcomplex lprocesses. lThese lprocesses l lre lhe lvily ldependent lon l lv
lil lbility l lnd l lccur lcy lof linform ltion, l lccess lto lintelligent ltechnologies, l lnd
 lthe linvolvement lof lthe lte lm lf lr lbeyond lsourcing, lwhich lis lnot lnecess lrily
lwh lt lh lppens lin lm lny lcomp lnies.

2. Supply lch lin lrisk lm ln lgement

M lint lining lsufficient lstock l lnd lproduct lqu llity l lre lcruci ll lfor ldirect lspend
lte lms l ls lthey limp lct lcustomer ls ltisf lction, lbusiness lreput ltion l lnd
lcredibility. lWhile lglob lliz ltion lgives lbusinesses lmore lchoices l lnd lbetter lr ltes
lwhen lit lcomes lto lgoods l lnd lm lteri lls, lit lh ls lcomplic lted lthe lprocurement
lprocess lby lheightening lpotenti ll lrisks l lnd llimiting lthe lte lm’s lcontrol. lNow,
lte lms lh lve lto lm ln lge l l ldiverse, lextensive lsupply lch lin lth lt loper ltes l lcross
lm lny ln ltion ll lborders. lThe lmore lcomplex l lnd lspre ld lout lthe lsupply lch lin
lnetwork ldesign, lthe lhigher lthe lrisks. lNew l lre ls lme ln lnew lleg ll l lnd ltr lde
lrequirements; lmore lcoordin ltion lwith lsuppliers l lnd leven lgovernments; l lnd l lll
lthe lcomplic ltions lof lshipping lorders l lcross lborders, lsuch l ls ldocument ltion,
lcustoms lcle lr lnce, letc. lDirect lprocurement lte lms lmust lthink lon ltheir lfeet,
lbuild lin lbuffers l lnd lh lve lcontingency lpl lns lto lh lndle lthe lglob ll lsupply lch
lin lwhile lm lint lining lcompetitiveness.

3. Supplier-rel lted lissues

Cost loptimiz ltion, lon-time ldelivery, lconsistent lqu llity, lright lqu lntity,
lcontinuity lof lsupply, lsufficient linventory l– l lll lof lthese l lre llinked lto
lsuppliers. lThe lless lreli lble lthe lsupply lch lin, lthe lhigher lthe lrisks linvolved, lso
lsupplier lperform lnce lm ln lgement lis l l lhuge l lnd lcritic ll lt lsk. lWhile lm ln
lging lprocesses linvolving lsuppliers lis limport lnt, ldirect lprocurement lmust l llso
lbuild lstr ltegic, lcoll lbor ltive lp lrtnerships lwith lthem lto lfoster lloy llty l lnd
lencour lge linnov ltion, lwhich lpl ly l l lstrong lrole lin lboth lfin lnci ll l lnd
lbusiness lgrowth. lOne lof lthe lmost limport lnt lf lctors lth lt l lffects lsupply lis lthe
lvendors’ lfin lnci ll lhe llth, lso lbusinesses lmust lconduct lsupplier lrisk l lssessment
lregul lrly. lThey l llso lc lnnot l lfford lto llose lsight lof ltheir lsuppliers’ lindustry lst
ltus l lnd ls lfety lpr lctices l ls lthese lc ln l lffect ltheir lcomp lny’s lreput ltion.

4. Inform ltion lbottleneck

 lccur lte l lnd lre ll-time ld lt l lfrom lv lrious lintern ll lbusiness lfunctions lis lessenti
ll lfor lsmooth lsupply lch lin lm ln lgement. lBut lfor l l lv lriety lof lre lsons l–
lsecurity lissues, ll lck lof lcooper ltion, ll lck lof ld lt l ltr lcking l– linform ltion lis
lnot l llw lys le lsy lto lcome lby. lProfession lls lm ln lging lthe ldirect lprocurement
lprocess lshould lte lm lup lwith lkey lintern ll ldep lrtments lso lthere lis lbetter
lunderst lnding lof lthe lprocess, lmore ltr lnsp lrency l lnd le lsy l lccess lto lrelev lnt
linform ltion.

5. Technologic ll lb lrriers
Often, lthe lsupply lch lin lis llittered lwith ldifferent ltypes lof lprocurement lsoftw
lre l lnd l lpplic ltions. lThere lm ly lbe lmodern lcloud-b lsed lsystems lincorpor lting
lm lchine lle lrning, l lrtifici ll lintelligence l lnd lblockch lin; lthere lwill lbe lthe lold,
lcumbersome lERP lsystems; l lnd lthere lm ly lbe lonly lem lil l lnd lspre ldsheets.
lM lking ldivergent lpl ltforms lcomp ltible lis l l lbig lch lllenge, lespeci llly lwhen
lthere l lre l l lhuge lnumber lof lsuppliers l lnd lno lgeogr lphic lbound lries. lFor
ldirect lprocurement, lthe lch lllenge lis lnot ljust ltheir lown lbusiness l ldopting lbest
lpr lctices l lnd l lutom ltion, lbut l llso lthe lsuppliers’ lc lp lbility l lnd lwillingness
lto ldo lso.

6. Keeping lcosts llow l lnd ls lvings lhigh

ls ls lvings lh lve l l ldirect limp lct lon lthe lorg lniz ltion’s lbottom lline, lit’s l llw
lys lin lfocus. lBut lwhen lthe lsupply lch lin lpl lnning lis l llre ldy lefficient l lnd
ldirect lm lteri lls l lre lbeing lsourced lcompetitively, lthe leffort lto ldeliver lhigher
lcost ls lvings lis l l lch lllenge. lInevit lbly, lr ltes ltend lto lgr ldu llly lrise l ls
lsuppliers lincur lhigher lcosts lon ltheir lend. lThe lsolution lc lnnot l llw lys lbe lto
lswitch lto l l llow-cost lsupplier l ls lthis lcomes lwith lits lsh lre lof lrisks, lbesides ld
lm lging lthe lrel ltionship lwith l l lreli lble, ltrusted lvendor. lM lny lcomp lnies lnow
lspecific llly lme lsure lcost l lvoid lnce l ls ldirect lprocurement ldedic ltes l l lf lir l
lmount lof ltime l lnd leffort lto lit.

Q3). lWh lt l lre lthe lv lrious lbusiness loper ltions lth lt lc ln lbe lsupported lby lERP?
lExpl lin lthe lProcurement lto lP ly lcycle.
lns). l ln lERP lsystem lis lm lde lup lof l lpplic ltions l lnd ltools lth lt lhelp l lll l lre ls lof
lyour lbusiness lcommunic lte lwith le lch lother lmore leffectively. lERP lsystems lintegr lte
l lll lf lcets lof l ln lenterprise linto lone lcomprehensive linform ltion lsystem. lEmployees lin
lpl lnning l lnd lscheduling, lfor lex lmple, lh lve l lccess lto lthe ls lme ld lt l l ls lthe lst lff lin
lfin lnci ll lm ln lgement lfor ltheir lspecific lneeds. l lll ld lt l lis l lv lil lble lin lre ll-time,
lwhich len lbles lemployees lto lm lke lf lster, lmore linformed lbusiness ldecisions. lWith
lERP lsystems, l lll lvit ll lbusiness lfunctions—estim lting, lproduction, lfin lnce, lhum ln
lresources, lm lrketing, ls lles, lpurch lsing—sh lre l l lcentr ll lsource lof lup-to-the-minute
linform ltion. lEnterprise lresource lpl lnning lsystems lstre lmline lthe lcollection, lstor lge l
lnd luse lof lyour lorg lniz ltion’s ld lt l. lThe lright lERP lsystem lc ln lhelp lto lcollect l lnd
lstore ld lt l linto lone lcentr llized lpl lce lfrom l lre ls lsuch l ls: l-

1. Fin lnce l& l lccounting

2. Hum ln lResources
3. Customer lRel ltionship lM ln lgement
4. Production lM ln lgement
5. Business lIntelligence
6. W lrehouse lM ln lgement
7. Inventory lM ln lgement
8. Supply lCh lin lM ln lgement
9. Point-of-S lle l(POS)
10. ECommerce

The lProcurement lto lP ly lcycle: l-

S lP lProcure lto lP ly lprocess lis lrequired lwhen lwe lneed lto lpurch lse lm lteri lls/services
lfrom l ln lextern ll lvendor lfor lour lcomp lny. lThis lprocess lincludes l lll lthe lbusiness lt
lsks lst lrting lfrom l l lpurch lse lrequisition l(PR) l lnd lfinishing lwith lp lyment lto lthe
lvendor. lThe levents lth lt ldetermine lthe lst lrt lof lthis lprocess l lre lrel lted lto:

 M lteri ll lrequirement lpl lnning l(MRP) lfrom lW lrehouse lM ln lgement lto lensure
lminimum lm lteri ll lstock l lnd ltools lqu lntities lin lthe lw lrehouse.
 Pl lnt lM linten lnce lm lteri lls, ltools, lextern ll lresources, lservices lpl ln lto
lprocure l lll lthe lresources lneeded lto lm ln lge lPl lnt lM linten lnce lin l l lproper
lw ly.
  Other lprocurement lneeds lcoming lfrom ldep lrtments lof l l lcomp lny.

To lst lrt lthe lprocess, lit lis lnecess lry lto lcre lte l l lPurch lse lRequisition l(PR), l l
ldocument lth lt l lllows lpeople lworking lin lv lrious ldep lrtments lof l l lcomp lny lto
lspecify lthe lgoods lor lresources lth lt lh lve lto lbe lpurch lsed. lThe lprocess lends lwhen
lthe lp lyment lto lthe lvendor lis lbooked.

S lP lprocure lto lp ly lprocess lutilizes lthe lfollowing ltr lns lctions l lnd ldocuments lin
lS lP lERP: l-

1. Purch lse lRequisition

Purch lse lrequisition lis l ln lintern ll ldocument lwhich lis lissued/cre lted lwhenever
lthe lgoods l(stock/non-stock) l lnd/or lservices l lre lrequired. lSever ll ltypes lof
ldocument lwill lbe l lv lil lble lto lbe lused. lS lP lsystem lchecks l lutom ltic llly lv
lrious lp lr lmeters llike lbudget l lv lil lbility l lnd lrequires l ln l lpprov ll lworkflow
lfor lthe lrequisition lm linly lb lsed lon lits lv llue l lnd lintern ll ldeleg ltion lof l
luthorities, l ls lwell l ls lother ltechnic ll lp lr lmeters l(like litem lc ltegory lor lpurch
lsing lgroup). lThe lrequisition lcre lted lin lthe lsystem lc ln l llso lbe lrevised lif
lneeded.

2. Request lfor lQuot ltion l(RFQ)

RFQ lis lrequired lwhen lyou ldon’t lknow lyour lvendor l lnd lneed lquot ltions lfrom
lsever ll lvendors lfor l l lm lteri ll/service. lIt lis lthe lcomplete lset lof lprocess lth lt
lis ltriggered lonce l l lpurch lse lrequisition lh ls lbeen lreceived. lRequisition lline
litems lc ln lbe lgrouped ltogether lin lthe ls lme lRFQ lprocess. lOnce lthe lquot
ltions l lre lreceived lfrom lyour lvendors, lyou lm lint lin lthe lrecords lin lS lP
lsystem lthus lch lnging lthe lRFQ ldocument lto l l lQuot ltion.

3. Open lContr lct

Open lcontr lct lis l l lgener ll l lgreement lwith lthe lvendor lfor l l lgiven lperiod lof
lv llidity lwith l lgreed lprice llist. lWith lreference lto lthe ls lme lcontr lct lmultiple
lContr lct lRele lse lOrders lc ln lbe lgener lted luntil lit lis lexpired lor loutst lnding lv
llue lis l lv lil lble.

4. Purch lse lOrder

 Purch lse lorder lis l ln l lgreed lupon loffici ll ldocument lfrom lthe lcustomer lto
lvendor lfor lcustomer’s lintent lto lbuy lor lreceive lone/multiple lm lteri lls lwith l
lgreed lprices, lle ld ltimes/delivery ld ltes, lqu lntities l lnd lspecific ltions. lThe
lbudget lcommitment lis l lutom ltic llly lcre lted. lToler lnces lfor lgoods l lnd lunpl
lnned lservices lc ln lbe lforeseen.

5. Contr lct lRele lse lOrder

Contr lct lRele lse lOrder lis l ln l lgreed lupon l ln loffici ll ldocument lfrom lthe
lcustomer lto lthe lvendor lreg lrding lthe lcustomer’s lintent lto lbuy lor lreceive
lone/multiple lm lteri lls lwith l lgreed lprices, lle ld ltimes/delivery ld ltes, lqu lntities
l lnd lspecific ltions l lnd lit lis lcre lted lwith lreference lto l ln lOpen lContr lct. lThe
lbudget lcommitment lis l lutom ltic llly lcre lted. lToler lnces lfor lgoods l lnd lunpl
lnned lservices lc ln lbe lforeseen.

6. Goods lReceipt
Goods lReceipt lis lthe lstep lin lthe lprocurement lcycle lwhere lthe l lctu ll lgoods
lordered lvi l l l lPurch lse lOrder/Contr lct lRele lse lOrder l lre lreceived lby lthe
lcomp lny l lnd lit lis lchecked lfor lthe lrequired lqu llity l/ lqu lntity. lIf lthe lgoods
lqu llity lmeets lthe lrequired lcriteri l, l l lGoods lReceipt ltr lns lction lis lposted lin
lthe lS lP lsystem lwith lreference lto lthe lPurch lse lOrder l/ lContr lct lRele lse
lOrder. lThis ltr lns lction lh ls ldu ll leffect lof lch lnging lthe lstock lqu lntity l(for
lentered lm lteri lls) l lnd l lt lthe ls lme ltime lentry lin lthe lfin lnci lls lmodule lis l
llso lp lssed lfor lthe ldebiting lthe lstock l lg linst lthe lp ly lbles lto lthe lvendor.

7. Service lEntry
Service lentry lcertifies lth lt lthe lrequested lservices lfrom lthe lPurch lse
lOrder/Contr lct lRele lse lOrder lh lve lbeen l lctu llly ldelivered/rendered. l l
lconfirm ltion lwith lthe lrequired lp lr lmeters lis lentered lon lthe lservice lentry
lsheet lwhich lis lthen lrouted lvi l l l lworkflow lto lthe lrequired llevels lfor lconfirm
ltion l lnd lthe lfin ll l lpprov ll.

8. Invoice lH lndling
The lprocess lis ltriggered lwhenever l l lvendor linvoice lreceived lfor lthe lpurch lses
lis lto lbe lentered lin lthe lS lP lsystem. lThe linvoice lc ln lbe lput lon l l lst ltus lof
 lblock lfor lp lyment. lOnce lthe linvoice lis l lpproved lvi l lthe ldefined lworkflow
lin lthe lS lP lsystem, lthe linvoice lc ln lbe l lctu llly lposted. lIt lis lusu llly ldone lby
lthe lresponsible lperson lin lthe l lccounts lP ly lbles ldep lrtment lof l l lcomp lny.
lThe lprocess lusu llly loverl lps ljoint lfunction llity lin lthe lMM l lnd lFI lmodules.

9. P lyment
If lthe linvoice lis l lpproved lvi l lworkflow, lthe ll lst lstep lin lthe lcycle lof lpurch
lsing lis lthe lp lyment lto lthe lvendor. lThis lis ldone lby lentering l l ltr lns lction lin
lthe lS lP lsystem lc llled lthe l“ lutom ltic lP lyment lRun”, lwhich lis lusu llly
ltriggered lperiodic llly lb lsed lon lthe lp lyment lterms l/ ldue ld ltes l ls lmentioned
lin lthe lpurch lse lorder. lThe lresult lof lthe lp lyment lrun lc ln lbe l l lcheck lprinted
lvi l lS lP lfor lthe lintended lvendors lor lthe lresults lof lthe lp lyment lrun lc ln lbe
lexported lto lextern ll lsystems lfor lonline lb lnking lport ll lvi l lwhich lthe lvendor
lp lyments l lre ltr lnsferred lelectronic llly.

Q4). lDr lw l lnd lexpl lin lwith lex lmple lhow lS lP-Purch lse lcycle l lnd lS lP-S lles
lCycle l lre lintegr lted.

lns). l
Suppliers (MM Module)

Customer (S jles & Distribution) Request for Quot

jtion

S jles Quot jtion Purch jse

Requisitions

S jles Order Purch jse Order

 Inventory

Customer Invoice
Supplier Invoice

P jyment P jyment

Integr ltion lbetween lS lP-Purch lse lCycle l lnd lS lP-S lles lCycle: l-

1. When lyou lcre lte ls lles lorder lin lSD, l lll lthe ldet lils lof lthe litems l lre lcopied
lfrom lM lteri ll lm lster lof lMM.
2. MRP l lnd l lv lil lbility lcheck lrel lted ld lt l lis l llso lt lken lfrom lMM l llthough
lyou lcontrol lthis ld lt l lin lSD l llso.
3. While lyou lcre lte linbound/outbound ldelivery lwith lreference lto l l ls lles lorder,
lthe lshipping lpoint ldetermin ltion lt lkes lpl lce lwith lthe lhelp lof lthe llo lding
lgroup, lpl lnt ld lt l, lshipping lconditions letc. lThis l llso lrefers lto lM lteri ll lM
lster.
4. The lm lteri ll lwhich lyou l lre lentering lin l l ls lles lorder lmust lbe lextended lto
lthe ls lles l lre l lof lyour ls lles lorder/customer lotherwise lyou lc lnnot ltr lns lct
lwith lthis lm lteri ll.

Q5). lTop l5 lfe ltures lyou lthink lshould lbe lbuilt lin lthe lERP lsystem lso lth lt lit lwill
lhelp lorg lnis ltion lto lperform lbetter. lHighlight lthe lproblem le lch lfe lture lwill
lsolve lor lthe lv llue- ldd lit lis lgoing lto loffer. l
lns). lTop lfive lfe ltures lwhich lc ln lbe lbuilt lin lthe lERP lsystem lso lth lt lit lwill lhelp
lthe lorg lniz ltion l lre: l-

1. Integr ltion
This lERP lfunction llity lis l l lm ljor lp lrt lof lwh lt lm lkes lthis lsolution ldifferent
lfrom lother ltypes lof lsoftw lre. lWhile lm lny lst lnd llone lsolutions lbo lst ltheir l
lbility lto lintegr lte lwith lother lsystems, lthere’s lnothing llike l l lsuite lof l lpplic
ltions lbuilt lto lwork ltogether. lIntegr ltion lensures lthe lnumerous lc lp lbilities
loffered lby lERP lsystems lwork ltogether lh lrmoniously. lERP lprovides l l lfully-
integr lted, lintuitive lpl ltform lthrough lwhich lyou lc ln l ln llyse, lmonitor l lnd
lconduct lthe lm ljority lof ld lt l-driven lt lsks. lThrough l l lsingle ld lt lb lse, lERP
lcollects, lstores l lnd l ln llyses ld lt l l lcross l lll ldep lrtments. lThis lensures lse
lmless lcommunic ltion lwithin lyour lorg lniz ltion. lComp lnies ltod ly lno llonger lh
lve lto lwork lin lsilos, lth lnks lto lERP. lWorking lfrom l l lsingle lsource lof linform
ltion lreduces lthe ldiscrep lncies lbetween lyour lte lms l llong lwith lthe l lssoci lted
lerrors l lnd lcosts.

2. lutom ltion
ERP lc lp lbility l lutom ltes lcommon ltedious lt lsks lincluding lorder lentry, lp
lyroll, l lccounting, linvoicing, lreporting l lnd lmore. l lutom ltion lcuts ldown lthe lm
lny lhours lyour lst lff lwould ltypic llly lspend lon lthese lprocesses, l lllowing lthem
lto lfocus lon lmore limport lnt l lssignments. lOptimizing lyour lemployees’ ltime
lensures lmore leffective lworkd lys. l lutom lting lyour lprocesses lc ln l llso lreduce
lhum ln lerror. lWhen lyour lemployees l lre lspending lthe lm ljority lof ltheir ld ly
lrepe lting lthe ls lme lt lsk lover l lnd lover, lthey’re lbound lto lm lke l l lmist lke lor
ltwo. l lutom ltion l lllows ld lt l lto lbe lsent lfrom lone lp lrt lof lthe lsystem lto l
lnother, lwithout l lny lch lnce lof lerror.
3. D lt l l ln llysis
Since l ln lERP lis l llre ldy lcollecting l lnd lprocessing ld lt l lfrom l lll lyour
lbusiness lfunctions, lit lm lkes lsense lto lc lpit llize lon lth lt linform ltion lthrough l
ln llysis. lPut lsimply, lthis lERP lfunction lfinds ltrends l lnd lp ltterns lin lyour
lprocesses. lThis len lbles lusers lto lreflect lon lthe leffectiveness lof lcert lin lt lsks,
lin l lddition lto lproviding lforec lsts lfor lfuture lbusiness ldecisions. lERP l ln llyses
ld lt l lrel lting lto l lll lbusiness loper ltions, lincluding lclient ld lt l, lproduction lst
 ltistics, ls lles ld lt l l lnd lmuch lmore. lFor linst lnce, l ln lERP lc ln lhelp lyou
lpredict ldem lnd, lcre lte l l lbudget l lnd l ln llyse lyour lHR lfunctions. lD lt l l ln
llysis loffers le lsy l lccess lto lvit ll lbusiness ld lt l l lnd lgives lyou lthe ltools lyou
lneed lto ltr lck lorg lniz ltion ll lproductivity l lnd lefficiency.

4. Reporting
M lny lpeople luse lthe lterms l“reporting” l lnd l“ ln llysis” lsynonymously lwhen lt
llking l lbout lERP. lWhile lthis lisn’t ltypic llly l ln lissue, lit’s lstill lv llu lble lto
ldistinguish lbetween lthe ltwo. lYou lc ln lthink lof lERP lreporting lc lp lbility l ls
lthe ltools lneeded lto lconvey l ln llysis lto l ln lend luser. lThese ltools loften
linclude lcustomiz lble ld lshbo lrds, lG lntt lch lrts, lpie lch lrts, lb lr lgr lphs l lnd
lother lvisu ll lrepresent ltions. lM lny lsystems l llso l lllow lusers lto lrestrict l lccess
lto lreports, lprotecting lv llu lble lcomp lny linform ltion.

5. Customer lRel ltionship lM ln lgement

Customer lrel ltionship lm ln lgement l(CRM) lsoftw lre lis lbenefici ll lfor l l lcouple
lre lsons. lFirst, l l lCRM lis l l lgre lt loption lfor lcomp lnies lwhose lcustomer lb lse
lh ls lbecome ltoo ll lrge lfor lspre ldsheets. lSpre ldsheets lwork lwell luntil lyou lfind
lyourself lspending lmore ltime lupd lting lit lth ln l lctu llly lusing lit lto lfind linform
ltion. lSecond, lCRMs lwithin l ln lERP lcentr llize lcustomer linform ltion, l lllowing
lfor lquick l lccess lwhen lworking lwith lother lp lrts lof lthe lsystem. lFor linst lnce, l
ln lintegr lted lCRM len lbles lusers lto l lccess lbilling linform ltion l lnd lcustomer l
lddresses lwhen lprocessing lshipments.