What does ERP stand for?
ERP stands for enterprise resource planning, a comprehensive software system or package for managing day-to-day business operations. Thus, ERP systems are more suitable for large businesses and enterprises. However, for SME retailers, you can combine different utilities from popular open source platforms like Magento ERP to meet your unique needs. This ERP solution includes a set of modules to integrate all core business processes into a single solution. That way, ERP eliminates data duplication and provides data integrity.
To distinguish ERP vs MRP, the primary functions that ERP manages include:
- Accounting
- Project management
- Purchase
- Marketing
- Sales
- Manufacturing
- Distribution and logistics
- Supply chain
ERP systems can automate business operations, synchronize reports on key business metrics, and streamline all business processes.
Advantages of ERP
- Eliminate manual input and only require one-time input
- Offer better data security such as two-step or multi-factor authentication, user access, and data encryption
- Use one database and ensure data integrity
- Manage business time and resources better to save costs and achieve maximum ROI
- Enhance customer satisfaction and service with handy CRM components
Disadvantages of ERP
- Require high implementation and maintenance costs
- Take a long time to get used to the complex system
See Also
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