Enterprise Resource Planning (ERP) is a system that allows you to combine all the information or operations into a single unit. They use computer hardware and software to achieve this goal. The most important part of the ERP is a central database that is used to store a variety of modules. The goal is to integrate the various functions of the institution and it is not limited to the company and are commonly used by non-profit organizations, government agencies and other agencies. ERP has a great level of information flow and a higher quality of information that can transfer information from one place to another and act on data in a short time . Using ERP companies can manage inventory effectively. For example, when producing the product it will be done with a high level using a lower cost.
Besides that , ERP also allows a company to effectively manage its inventory. For example, when the products are manufactured, it will be done with a higher level of precision. This technology also can make the cost more lower. The money saved by the organization can be used to invest in new products or marketing strategies. ERP also allows a company to become highly flexible. Means the company able to quickly adapt to changes that occur in the market. Flexibility is very important today because if an organization is not flexible, it will be difficult for them to stay competitive. Besides that, the most important of ERP is the implementation of software. In dealing with software issues, ERP can also help companies integrate their operations. At the same time, it is important to realize that there are a number of challenges involved with utilizing ERP and maybe it will be costly. ERP tools are outside the price range of many organizations. As we know all this are the importance of ERP. Okay , that all from chapter 3. THANK YOU .
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