ERP Software

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ERP Software

For many enterprise-rated organizations, standard financial accounting software will be sufficient to meet their business processing needs. However, other organizations require the additional solutions that enterprise resource planning (ERP) software can provide. ERP software suites are modular, meaning the user may purchase only the necessary features of the software.

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These ERP suites were created with the small to midsize enterprise (SME) market in mind. This designation is less an indicator of the actual size of an enterprise and more an indicator of its complexity. This distinction is important, given that an organization that isn't particularly complex may not have a sufficient need for a customized ERP suite. Typically, an SME would need to be involved in international commerce, have a complex supply chain, or simply be a large enough enterprise to require custom business solutions for an investment in ERP software to be worthwhile.

How does enterprise resource planning software work?

At its core, an ERP suite is modular software that handles the most basic financial aspects of running a business. Users can build outward from that base by adding additional modules to handle other specific business functions. These modules can include business functions such as supply chain management and business intelligence. It can also include materials resource management, which is a broad topic that can address fixed asset management, review point of sale performance, offer project management solutions, and even manage inventory through Just-In-Time strategies. What differentiates ERP software from more basic accounting software is that an ERP suite provides a system that can be used to manage an entire enterprise instead of merely track its finances. Outside of convenience, users also benefit from all of these resources working cohesively through one base ERP suite thanks to the possibility of creating new processes or gaining a better holistic view of an organization that wouldn't be available under a series of unconnected software tools.

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