ENTERPRISE

RESOURCE PLANNING
(ERP)
COURSE INSTRUCTOR
MS. PARVICA GUPTA

ASSISTANT PROFESSOR

DEPARTMENT OF MANAGEMENT & COMMERCE

BBA 4TH SEM

RBMI, BAREILLY
• Enterprise Resource Planning (ERP) is made to
automate any task. With ERP, it is easy to
manage every department under one single
database. This consumes not much time and
is an easy and fast way to do work.
• Example:
• Any enterprise’s planning, manufacturing,
sales, and marketing efforts are put under one
management system and then it combines
into one single database system.
ENTERPRISE RESOURCE PLANNING (ERP)
Enterprise resource planning (ERP) refers to a type of software that
organizations use to manage day-to-day business activities such
as accounting, procurement, project management, risk management
and supply chain operations.
Since data is the lifeblood of every modern company, ERP makes it
easier to collect, organize, analyze, and distribute this information to
every individual and system that needs it to best fulfill their role and
responsibility.
A complete ERP suite also includes enterprise performance
management, software that helps plan, budget, predict, and report on
an organization’s financial results.
• ERP systems tie together a multitude(a very large number of
people or things) of business processes and enable the flow of
data between them. By collecting an organization’s shared
transactional data from multiple sources, ERP systems eliminate
data duplication and provide data integrity with a single source
of truth.
• ERP systems will also provide transparency into your complete
business process by tracking all aspects of production, logistics,
and financials. These integrated systems act as a business's
central hub for end-to-end workflow and data, allowing a variety
of departments to access.
A BRIEF HISTORY/EVOLUTION OF ERP
1. Developed in the 1970s, Material Requirement Planning is a
widely used approach for production planning and scheduling in
industry. It is the approach embedded in many commercially
available software applications. The function of MRP is to provide
material availability i.e., it is used to produce requirement
quantities on time.
• This process involves monitoring of stocks and demand, leading
to the automatic creation of procurement proposals for
purchasing or production. The main objective of MRP is to
determine which material is required, quantity required and by
when it is required.
2. Manufacturing Resource Planning (MRP II) –
• Developed in 1980s, Manufacturing Resource Planning is an
expansion of closed loop MRP for managing an entire
manufacturing company. This system provides an information that
is useful to all functional areas and encourages cross-functional
interactions. It supports sales and marketing by providing and orders
promising capability.
• It is a broad-based resource co-ordination system involving other
areas of a firm in planning processes, such as marketing, finance
and HR.
3. Enterprise Resource Planning (ERP)

• Developed in 1990s, Enterprise Resource Planning is foundation system for

domestic and global operations, supporting most or all functional areas in
their daily operations. is one of more common categories of business
software, especially with large-scale businesses.
• It is a business strategy and a set of industry-domain-specific applications
that build customer and shareholder communities value network system by
enabling and optimizing enterprise and inter-enterprise collaborative
operational and financial processes.
• ERP at its core is an effective way of centralizing information and workflow
processes through data management. Because ERP keeps all of your
workflow data in one place.
4. Enterprise Resource Planning(ERP II)

• Developed in 2000s, ERP II is name now use to describe ERP.

Basically, it is successor of ERP. It is a business strategy and
set of collaborative operational and financial processes
internally and beyond enterprise.
• These new business models reflect an increased business
focus on internal integration. It’s domain is in all sectors and
segments. Data in this is internally and externally published
and subscribed. It includes departmental modules, CRM, SCM
and other stakeholders modules. It emphasis on intangible
assists.
 ERPcompanies
• Many IN SUPPLY CHAIN MANAGEMENT
are implementing several supply chain ERP
strategies to minimize manufacturing costs, improve product
quality, and enhance plant productivity. As business
operations become more globalized, the integration of SCM
becomes more crucial.
• An ERP system in supply chain management can support
make-to-order, engineer-to-order, and configure-to-order
modes and provide real-time support for operations across
multiple sites.
• Generally, ERP systems in the supply chain consist of
modules for different departments or specialized solutions
for specific industries. ERP supply chain management
modules can be a part of ERP suites, and the tools they offer
may be limited or broader depending on your particular
Supply chain management (SCM) is the procedure of ensuring that
organizations supply components and materials throughout the entire
supply chain for the fulfillment of customer demands. By supervising the
movement of goods and linking supply and demand sources,
ERP plays a vital role in effective supply chain
management.

1.Demand & Planning

Supply chain processes involve determining the number of materials,
products, and resources needed, including labor. Enterprise resource
planning and supply chain management (SCM) systems combined
capabilities creations to respond quickly to constantly changing supply
chains.
2. Sourcing Materials
Procuring materials and recognizing suppliers, sub-contractors, and
distributors are also vital aspects of ERP supply chain management.
ERP systems with Material Requirements Planning (MRP) abilities
synchronize demand with the materials needed to manufacture goods
and provide easy access to vendor information.

3. Manufacturing
You need to know your capacity across production lines and who to
outsource or subcontract for specialty operations or overflow in supply
chain management. By housing all production information, such as
requisitions, purchase orders, and materials, an ERP system in supply
chain management helps firms effectively execute a production
schedule.
4. Delivery
Managing supply chain ERP effectively requires strengthening relationships
with shipping runners who can provide predictable delivery to meet delivery
dates.
ERP systems in supply chain that offer Distribution Requirements Planning
capabilities track shipments, display the quantity and number of goods
dispatched, and link support and shipping to improve delivery speed and
timeliness.
5. Finances
Financial management is another aspect of ERP supply chain management.
ERP systems with financial abilities help organizations manage the credit
limits negotiated with each node in the supply chain and stay current with
payments to prevent credit freezes.
 ESSENTIALS OF ERP IN SCM
1. User-Friendly
An ERP serves all manufacturing operations, including synchronizing your supply chain
with your company. The best ERP is easy to use by all users, from shipping and receiving
to production to accounting.
2. Expenses
Hosted ERP systems were costly to buy and maintain and often failed to deliver on their
return on investment (ROI) promises. All operating expenses, including upgrades and
storage, are covered by subscription-based, cloud ERP solutions, making your
expenditures more predictable and your time-to-value quicker.
3. Integrability
Integrated SCM and ERP solutions on a single platform share the same data model and,
therefore, can process data natively. However, manual, bespoke integrations can be
expensive and time-consuming to maintain.
4. Common Data Model
A unified data model between ERPs and SCMs will ensure data
accuracy, leading to greater productivity. In addition, deploying a
suitable data model from the start will save your organization
significant time connecting information.
5. Cloud-Based ERP
Providing you with optimal visibility, you can deliver immediate
help and control where it’s needed most. Cloud-based solutions
connect every node in your supply chain to your manufacturing
business processes and data, with no concern about where you are
in the world or your device.
 QUICK RESPONSE (QR)
Quick Response (QR) is a supply chain strategy aimed at reducing lead times,
accelerating the order fulfillment process, and enhancing customer satisfaction. It
primarily focuses on speed and agility in responding to customer demands. Key
components of QR include:
1. Rapid Demand Sensing
• QR relies on real-time data and demand sensing techniques to quickly identify
changes in customer demand. This allows organizations to adjust production,
inventory, and distribution plans promptly.
2. Efficient Communication
• Effective communication channels and collaboration between various stakeholders in
the supply chain, including suppliers, manufacturers, and retailers, are critical for QR
success. Clear and timely communication ensures that everyone is aligned and can
respond rapidly to changes.
3. Inventory Optimization
• QR aims to reduce excess inventory while ensuring that essential products are
available when customers need them. Techniques like just-in-time (JIT)
inventory management help in achieving this balance.
4. Technology Integration
• QR leverages advanced technologies such as RFID (Radio-Frequency
Identification), IoT (Internet of Things), and AI (Artificial Intelligence) to
enhance visibility, track inventory, and improve forecasting accuracy.
 ACCURATE RESPONSE (AR)
Accurate Response (AR) complements QR by emphasizing the
precision and accuracy of supply chain operations. While QR focuses
on speed, AR emphasizes the importance of delivering the right
products in the right quantities at the right time. Key components of
AR include:
1. Demand Forecasting
• Accurate demand forecasting is crucial for AR. Organizations invest
in sophisticated forecasting models and data analytics to ensure that
they can meet customer demands with precision.
2. Inventory Accuracy
• Maintaining accurate inventory levels is essential to avoid stockouts
or overstock situations. AR involves inventory management systems
and regular audits to ensure inventory accuracy.
3. Quality Control
• Quality control measures are paramount in AR to ensure
that products meet or exceed customer expectations
consistently. Organizations invest in quality management
processes and continuous improvement initiatives.
4. Order Accuracy
• Order accuracy is a priority in AR. Organizations implement
order management systems and technologies to reduce
errors in order processing, picking, and packing.
5. Supplier Reliability
• AR relies on reliable supplier relationships to ensure the
timely delivery of high-quality materials and components.
Supplier evaluation and collaboration are essential
components of AR.
EXAM READINESS
1. Which module of ERP handles payroll and employee data?
a) Human Resource Management.
b) Financial Management
c) Customer Relationship Management
d) Supply Chain Management
2. Which of the following is an example for commercial ERP
a. ERP5
b. Microsoft Dynamics AX
c. Compiere
d. Fisterra
3. What is an example of an ERP vendor?
a) Facebook c) Intel
b) Google d) SAP
4. What is an ERP module?
a) A component within the ERP system for specific business functions.
b) A standalone software application
c) An external tool used for reporting
d) A hardware component of the ERP system

5. What is a common challenge in ERP implementation?

a) Too few software options
b) Limited customization possibilities
c) High cost and complexity.
d) Lack of user data

6. What is the primary goal of implementing an ERP system?

a) Increase departmental isolation
b) Integrate core business processes.
c) Focus on marketing strategies
d) Reduce communication within teams
•Thank you