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Tuesday, 12 October 2010

A Closer Look at ERP Software Development

ERP software development is gaining a lot of reviews from different critics in the information technology industry. More and more people are realizing the value of ERP and a lot of reviews were written about it. ERP or enterprise resource planning is becoming a common household term in business organizations and industries worldwide. It pays to find out how ERP software are developed and it also important to know the key features about ERP and what is has to offer.

If you browse through the internet or a tech magazine, ERP has many definition and explanations. To make it simpler to understand, the ERP's purpose to interconnect and integrate the key business processes and functions of a company into one solution. ERP software development uses a range of software applications to improve the operation of different organizations such as resource planning and management control.

There are several modules that should be present in ERP software development. Each module should be able to function well in order for the software to be effective and reliable. ERP's development should work by integrating crucial activity between different departments. Different modules of ERP software should be work hand in hand with each other to carry out a full development of the software.

These ERP modules include the following:

? Production planning module - the production order type and scheduling is controlled here. Manufacturing capacity, components, parts and material resources are optimized here using production data history and sales forecasting.

? Purchasing module- provides control on procurement process and purchase order tracking and generation. The method of identifying candidate suppliers, price negotiations, purchase order awarding, processing of billing statements is done here.

? Inventory control module- it controls all the transaction and activities which are related to inventory. Most of the activities include identifying inventory requirements, item monitoring and inventory status report generation.

? Sales module- maintains sales order generation and sales evaluation. It also involves functions such as order placement, scheduling, shipping and invoicing

? Marketing module- involves marketing activities such as campaigns and direct mailing.

? Financial module- control data gathered from various department and producing financial status report out of them such as financial statements, balance sheets and general ledger.

? Human resource module- maintains employee database including information for each employee.

With ERP software development on the hot seat, hundreds of ERP providers are making their ERP system a must have tool to different companies. ERP software development is a difficult task for a company to perform and it takes time because it involves different factors to consider and reviews before implementing the system. Each module is developed further by companies so that business will get attracted to this software. Aside from this, there are factors to be considered when buying an ERP software. Having a deeper understanding on what these factors are should be taken notice in taking up ERP software development as this will reflect to the success of the company.

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