Why a company need an ERP (Enterprise Resource Planning) system

 

        Every business has unique needs and processes, but all businesses require technology with comprehensive functionality for tying the whole enterprise together. Enterprise Resource Planning (ERP) is the business technology that promises this functionality; it connects various parts of the business and provides better visibility into company’s operations. It can facilitate tremendous improvements in the effectiveness of operations. ERP would be useful in implementing standards that enhance the employees’ communication with the customer and the headquarter. For instance, it would facilitate reporting such as the need for consultants to file progress reports to the headquarter. Such human behavior controlled by the ERP system can help the company to establish strong human resource management. An ERP system would also implement strong internal controls in the company. ERP system monitor the company operating activity, with the purpose of minimize unnecessary lose by implementing risk assessment. For instance, completeness check and reasonableness test are strictly need to proceed for all customer information relative data input .ERP system has set up a standard for the accessibility for every employee base on their position level. Global consulting corporation offices are distributed throughout California and separate from the headquarter, ERP system provide an efficient way to ensure the reliability of the company’s financial operation. With the ERP system, the executive members such as CEO and CFO would have more capacity to control their employees remotely. An ERP system also implements the accounting information system, which controls the inputs processes and outputs, by ensuring storage through a large database system so that the accounting cycle runs smoothly.

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