It is an enterprise management system with management accounting as the core, which can provide cross-regional, cross-departmental, and even cross-company integration of real-time information. It has the characteristics of integration, progressiveness, unity, integrity, and openness.
In other words, the ERP system integrates all internal resources of the enterprise to obtain customer orders, complete processing and delivery, and finally receive customer payments. Integrate all resources, and plan for procurement, production, cost, inventory, distribution, transportation, finance, and human resources, to achieve the best combination of resources and the best benefits.
It refers to a management platform established based on information technology, with a systematic management philosophy, providing decision-making and operational means for enterprise decision-makers and employees. The ERP system integrates information technology and advanced management ideas, becoming the operating mode of modern enterprises, reflecting the requirements of the times for enterprises to allocate resources reasonably and maximize the creation of social wealth, and becoming the cornerstone of enterprise survival and development in the information age.
Furthermore, we can define it from three levels: management philosophy, software products, and management systems:
1. It is a set of enterprise management system standards proposed by Gartner Group Inc., a well-known computer technology consulting and evaluation group in the United States. Its essence is a supply chain-oriented management concept further developed based on MRP II (Manufacturing Resources Planning);
2. It is a software product that integrates the application of client/server architecture, relational database structure, object-oriented technology, graphical user interface, fourth-generation language (4GL), network communication, and other information industry achievements, with ERP system management ideas as the soul;
3. It is an enterprise resource management system that integrates enterprise management concepts, business processes, basic data, human and material resources, computer hardware, and software.
Understand ERP by functional category:
Finance/Accounting: Real-time and complete account information, timely reminders, and customer credit limit control, in compliance with the Business Tax Law and internal audit and control standards
Procurement/Business: Meet the basic procurement work of enterprises, truly control the order processing status, record real-time transaction data, accurately grasp progress, and meet customer delivery requirements
Production and manufacturing: Truly grasp the production schedule, material preparation plan, process, and outsourcing management, calculate production costs in real-time, shorten manufacturing cycles, improve capacity utilization, and reduce manufacturing costs
Middle to senior executives: Real-time integration of information to effectively grasp the company's operational status, extend ERP system perspective, and enhance enterprise competitiveness in combination with business philosophy.
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