Enterprise resource planning involves careful analysis of the working methodologies of a company and then introducing new tools and procedures to improve the performance of the company. There are several companies who specialize in enterprise resource planning, or ERP, as it is commonly called. These companies specialize in being aware of the latest tools available in the market for resource management and planning. In order to implement a new plan for a company, usually the following steps are involved:
1. Analysis of the older working methodology or ERP evaluation: Most traditional companies use outdated technological tools to complete their tasks. ERP consultants carefully analyze the tools and labour force of the company and track down the sources of inefficiency in the company. 2. Introduction of newer tools: The ERP consultants then introduce new technological tools, specially in terms of software, and train personnels in the company to use them. The ERP consultants make sure that the company gets familiar with the newer tools at every level of work. This ensures that when they leave, the company is capable of handling its business by itself. 3. Maintenance plan: Before leaving, the company is given a good training on a maintenance plan on how users continually tweak and update the system, so that the new system does not become obsolete. ERP softwares are continuously improving and ERP vendors are constantly upgrading and developing their technology. These softwares help improving all aspects of the business from purchasing, to inventory management, invoice verification to warehouse management. It is important to remember that many companies often underestimate the cost of ERP as they only account for the cost of the software. They do not take into account other costs like hardware or network upgrades, data backups and staff overtime. A good ERP consultant will look specifically at your business requirements and evaluate it at every step.ERP implementation process can take anywhere between a few weeks to several months for implementation.
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