What is ERP (Enterprise Resource Planning)?

Enterprise resource planning (ERP) is generally known as a type of company management application, typically a package of integrated software that a company may use to gather, store, handle, and interpret data from several small business tasks.

ERP provides an integrated and continuously updated view of core business procedures using shared databases maintained by a database management program.

ERP systems monitor company resources such as money, raw materials, manufacturing capacity, and also the standing of company responsibilities: orders, purchase orders, and payroll.

The software which forms the system share information across different sections (manufacturing, buying, accounting, sales, etc.) that offer the information.

Function of ERP Systems

In ERP systems, these are known as and grouped as ERP modules :

Financial :

General ledger, fixed assets, payable including vouching, matching and payment, receivables and collections, cash management, financial consolidation.

Purchase :

Purchase Orders & Contracts, Invoice, Tracking & Aging, RPO, Vendor Relations, Goods Received Management, Back Order Report, Links to Updated Price and Products.

Operations :

Workflow & Business Rules, Activities & Approvals Business Intelligence, Role-specific, Dashboards Document, Management Real Time Solution.

Accounting :

Budgeting, Costing, Cost Management, Activity-Based Costing.

Human Resources :

Recruiting, Training, Rostering, Payroll, Benefits, Retirement, Pension Plans, Diversity Management, Retirement, Separation.

eCommerce :

View your inventory, Get pricing as if they were at the store, Place orders and quotes, View past orders and trace open orders, Generate their current statements, Keep track of multiple jobs, Start a return.

Manufacturing :

Engineering, bill of materials, work orders, scheduling, capacity, workflow management, quality control, manufacturing process, manufacturing projects, manufacturing flow, product life cycle management.

Sales :

Sales Quotes & Contracts, Order Entry, Lot Orders, Discount Layers, Payment Terms Automation, Opportunity Management, Return Management, Authorization.

Order Processing :

Order to cash, order entry, credit checking, pricing, available to promise, inventory, shipping, sales analysis, reporting, sales commissioning.

Warehouse :

Easy receipt entry of goods, Automated and manual transfers between distribution centers, Comprehensive shipment management, Setup of delivery routes, Notify customers on shipment.

Inventory :

Multi-organization & Location Costing Flexibility Inventory Allocations & Transfers Non-inventory Cost of Sales Warehouse Management.

Vendor :

EDI Point of Sales Point of Transfer SPAs SPJs Vendor Pricing Updates Goods Issues Buying Groups.

Advantages ERP System

  • Sales forecasting, which allows inventory optimization.
  • Matching purchase orders (what was ordered), inventory receipts (what arrived), and costing (what the vendor invoiced).
  • Revenue tracking, from invoice through cash receipt.
  • Provides a comprehensive enterprise view (no “islands of information”), making real–time information available to management anywhere, anytime to make proper decisions.
  • Order tracking, from acceptance through fulfillment.
  • Chronological history of every transaction through relevant data compilation in every area of operation.
  • Facilitates standard product naming/coding.
  • Protects sensitive data by consolidating multiple security systems into a single structure & Brings legitimacy and transparency to each bit of statistical data.

Benefits of ERP System

  • ERP creates a more agile company that adapts better to change. It also makes a company more flexible and less rigidly structured so organization components operate more cohesively, enhancing the business—internally and externally.
  • ERP can improve data security in a closed environment. A common control system, such as the kind offered by ERP systems, allows organizations the ability to more easily ensure key company data is not compromised. This changes, however, with a more open environment, requiring further scrutiny of ERP security features and internal company policies regarding security.
  • ERP provides increased opportunities for collaboration. Data takes many forms in the modern enterprise, including documents, files, forms, audio and video, and emails. Often, each data medium has its own mechanism for allowing collaboration. ERP provides a collaborative platform that lets employees spend more time collaborating on content rather than mastering the learning curve of communicating in various formats across distributed systems.
  • ERP offers many benefits such as standardization of common processes, one integrated system, standardized reporting, improved key performance indicators (KPI), and access to common data. One of the key benefits of ERP; the concept of integrated system, is often misinterpreted by the business. ERP is a centralized system that provides tight integration with all major enterprise functions be it HR, planning, procurement, sales, customer relations, finance or analytics, as well to other connected application functions. In that sense ERP could be described as “Centralized Integrated Enterprise System (CIES)”

“At Ximple, we constantly upgrade our software to the newest and the most advance technology. We have integrated the most cost efficient payment processing module that has proved guaranteed raise in profits along impeccable customer satisfaction”


Mike Patel

Mike Patel, Author of this Article, has helping leading Distributors, wholesalers and retailers to improve business by leveraging technologies. He is a vision to be Top Cloud ERP in Distribution and Wholesale Business. He is a team of talented engineers working to create intelligent and innovative cloud ERP for tomorrow’s world.

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