Economy

What is erp? »Its definition and meaning

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In the business world it is known as ERP, the business resource planning system, which acquires that name by abbreviation of its name in English (enterprise resource planning), which is defined as that system in charge of hosting the information of all the data and processes that are carried out in the company.

This is how ERP is a centralized or unique system, which has all the data obtained from the operational, administrative, productive and commercial processes that are generated in a company or organization, to reflect the reality of it and understand its functioning.

Also, you can have an ERP in each area that makes up the organization, where the information on the processes generated by each of them is integrated into a single system.

This entire structure works as a complement for management, when making decisions that require immediacy and even for the planning processes of the organization, in the short, medium and long term.

The strategies that were created for each department (specific), in search of compliance with the business strategy (general), need to comply with constant measurement, to identify if the correct route is being followed or if the plans need to be modified. ERP is a practical tool that facilitates this measurement process.

This even has a psychological connotation, where the worker does not feel that his work is being excluded, but on the contrary, he feels that his efforts and labors are being taken into account. At the moment the data is evaluated and the failures or improvements in the processes are detected.

In such a changing world, where technology advances with the passing of days, it is necessary that the company also advance, that is why various ERP softwares have been created, which today compete to meet the best quality standards, Regarding the fulfillment of offering the best system to facilitate the flow of information of the companies, in a centralized system, that can adapt to the objectives of the organization.

ERPs are known as "back office" or back room, which refers to the fact that customers and the general public do not have access to the information that they keep, but that it serves to improve the relationship between these agents and the company.

The companies that mostly use ERP are those of production, manufacturing, logistics, storage and technological information. Hosting in the ERP, information about your inventory, production, distribution, logistics, accounting and invoices.