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ERP: Enterprise Resource planning

ERP: Enterprise Resource planning

Enterprise resource planning (ERP) is business management software. It is, for most case, a suite of integrated applications helping company to collect, store, manage and analyse data from its business activities.

The ERP, typically, covers :

Product planning & cost
Manufacturing or service delivery
Marketing and sales
Inventory management
Shipping and payment

Product planning and cost

Product planning & cost, the process for product definition going from developping product idea to introducing product to market. Entreprise Ressource Planning helps company take the right decisions about price, distribution and promotion.
Phases of Product Planning:

  1. Developing the product concept
  2. Studying the market
  3. Market research
  4. Product introduction
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Manufacturing or service delivery

The process of production of marchandise for user or sale.
The Manufacturing can refers to
– Human Activity ( for Service Product for exemple)
– Industrial Production: converting Raw materials to finished goods. These goods can also manufactering more complex products.

Marketing and sales

Marketing is the fact to communicate about the value of a product ( good, service or brand ) to potentiel customers in order to promote or to sell it.
Marketing starts by choosing the target market by analysis and segmentation. Then Marketers have to Understand the customer behavior in order to better advertise the product.
Marketing build the chain between Manufactering and Sales.

In SAP, SAP CRM ( Customer Relationship Management) provides a powerfull CRM software to build 360° view of customer.

Inventory management

Inventory management is the management of stocks and inventory of finished goods or raw materials.
With Inventory management, company can plan production and stock repartition in order to optimize stock cost.
The scope covers: replenishment lead time, costs of inventory, asset management, inventory forecasting, inventory valuation, inventory visibility, physical inventory, available physical space for inventory, quality management, replenishment, returns and defective goods …

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Shipping and payment

It defines
– how the company bills the product/service to customer
– how the company delivers the product/service
– the terms and means of payment.

Learning more about ERP

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Modern ERP can be used in an undergraduate or graduate enterprise resource planning systems course or to support an ERP module in information systems, accounting, business, or supply chain courses. This third edition continues to be vendor-agnostic and has been substantially revised to keep pace with advances in the ERP marketspace. New topics include cloud computing, mobility, and business analytics, while ERP security, ERP risk management, databases, and supply chain have been expanded. Innovative graphics and ERP screenshots have been incorporated to further aid in the learning process.


* resource: wikipedia page on Entreprise Ressource Planning