ERP refers to Enterprise Resource Planning software. In general, ERP
is an industry term for the broad set of activities supported by multi-module
application software that help a manufacturer or other business manage
the important parts of its business, including product planning, parts
purchasing, maintaining inventories, interacting with suppliers, providing
customer service, and tracking orders. Typically, an ERP system uses
or is integrated with a relational database system. In practice, ERP
does not live up to its acronym. It does not do much about planning
or resource planning.
why do I need to use ERP?
the word "E" or enterprise. This is true ambition of ERP.
It attempts to integrate all departments and functions across a company
onto a single computer system that can serve all those departments’
particular needs. The integration streamlines internal business processes
and improves productivity of a company.
be concise, ERP software offers the following benefits:
ERP integrates all aspects of the business processes including: manufacturing,
design, customer services, financial, sales and distribution. By integrating
business processes and people anywhere in your company, you can enjoy
more efficient work flow and improved productivity.
Nowadays, retailers and consumers push for lower prices, better quality
and quicker delivery. ERP implementation shows your determination to
head for those direction. Confidence of your business partners and consumers
will be increased.
ERP provides the right information to the right people at the right
time anywhere in the world, enabling you to improve productivity, enhance
decision making and promote communication between coworkers, customers
For better ERP software, it helps to reduce or eliminate duplicate work,
and automates operational tasks and provide easy access to information.
ERP, therefore, can deliver significant time savings.
Advanced ERP software has the ability to be customized to the extent
that screens can be remodelled, fields can be edited and the architecture
modified through progressive installation processes. In addition, advanced
ERP software can be operated in a secured, web-based environment. These
features provide flexibility and convenience in implementation and operation.
Some multi-lingual ERP software can perform automatic translation enables
almost every style detail to be viewed in several languages including
English, Chinese, and etc. It improves the effectiveness of communication.
Manufacturing companies often find that multiple business units across
the company make the same widget using different methods and computer
systems. ERP standardizes the manufacturing processes and improve quality.
ERP helps business process flow more smoothly and improves the efficiency
of fulfillment process. It leads to reduced inventory. Eventually, it
decreases the overall business cost. At its simplest level, ERP provides
a way to integrate all your business process. To get the most from the
software, you have to get people inside your company to adopt the work
methods outlined in the software. If the people do not agree with the
method and the system has no flexibility to be customized, ERP projects
will be failed. Therefore, you should choose ERP software wisely.
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A JOURNEY, NOT A DESTINATION - David Cullis, XeBusiness
Will Your Company Stay the Course?
The textile sector in the UK continues to languish for the most part
in intensive care.
Having met many
executives in this sector, I continue to be struck by the wide gap between
the few companies who have got their management act together and the
rest who struggle along until a final crisis pushes them over the edge.
reaction to the increased level of price competition has been to curtail
manufacturing in the UK and source product off shore from low wage cost
regions. This strategy is fine in terms of reducing the unit cost of
manufacture, but it does bring a number of logistics and other management
issues in its wake. Quality, lead times to replenish and uncertainty
of supply are just a few issues that now need to be dealt with.
cost advantage obtained by sourcing off shore is soon dissipated as
everyone starts to do it.
Given the above,
the competitive battleground continues to be driven by the same strategic
factors that have always applied, namely doing more with less and doing
it better and faster than the competition.
There is no doubt
that without the aid of effective business management tools, this continual
process of performance measurement to drive operational improvements
will not be achievable.
you cannot control and refine what you do not measure. What you are
not measuring therefore is probably out of control.
to invest in effective technology based management systems in the textile
sector is certainly one major reason why it has remained almost perpetually
in recession to a greater or lesser degree in recent decades, regardless
of the generally prevailing economic conditions. When investment is
made, it is usually piecemeal and fragmented.
system, like your company, has to change to model the on-going process
of improvement that is needed to retain and increase competitiveness.
An effective computer
based business management system will rapidly (in months, not years!)
recover any investment made in it.
How? It will
reduce the cost of doing business.
It will form the core of a service level improvement programme that
is essential to maintain and increase sales.
Business Cost Reduction
Reduce stocks of finished goods and improve their availability to your
customers. (Information from your computer system will replace inventory).
Reduce deployment of fixed assets. For example, reduced stockholding
of finished goods and raw materials will reduce the requirement for
expensive warehouse space.
Reduce the administration overhead: less paper handling, capture data
once only to improve accuracy and faster access to information held
digitally for decision making and progress chasing.
Overall, you benefit from being more price-competitive and from better
margins on sales.
Achieve more reliable delivery times.
Achieve shorter order to delivery times.
Respond more rapidly and effectively to market changes for your products.
Improve product availability.
Provide a more responsive after sales service.
Not having an effective computer system to underpin trading operations
obviously puts a textile company at a serious competitive disadvantage.
systems like XeB's are available with very short paybacks on investment.
systems like these are deployed and used effectively remains a challenge.
Investments also have to be made in training, consultancy and in customizing
the system to reflect changes within the supply chain and improvements
to business processes.
The (too) few companies who continue to prosper understand the importance
of effectively deploying technology tools and are not reluctant to make
investments in them.
need to follow suit. The systems are available. However, the will to
make the changes necessary to bring these systems to bear remains the
major challenge facing companies in this difficult sector.
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