ERP Definitions and Benefits

 What is ERP - a definition?
Do I need a new ERP system?
What Benefits will I get from ERP?
What is the ROI and payback potential for an ERP system?
What is the difference between ERP, MRP, MRPII and APS?
Does Seradex support Backflushing?
How does Strategic Planning affect ERP Projects?
What is CRM - a definition?

What is ERP - a definition?

ERP is short for “enterprise resource planning.” Enterprise Resource Planning (ERP) is the latest business, information technology (IT) tool in the Corporate World today. Enterprise resource planning is an integrated software solution used to manage a company’s resources. ERP’s was preceded by MRP (material requirements planning) and MRP II (manufacturing resources planning). These earlier systems had limitations addressed by ERP systems. Today’s ERP systems integrate planning, inventory, Purchasing, engineering, order entry, manufacturing, accounting and human resources.

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Do I need a new ERP system?

Here are some of the warning signs that your current software is limiting your business growth:

• Increasing customer complaints about poor service
• Using multiple systems for the same task
• Failing to get accurate, up-to-date information for decision-making
• Using handwritten notes because it's easier to jot it down than use the current system
• Having to enter the same data into more than one system
• Inability to expand the business due to limitations of current information system
• Lost or corrupted data

If you are experiencing any of these symptoms, you are a good candidate for a new information system. The return on investment from implementing an ERP system can be very attractive.

The Seradex ERP system will help deliver solid customer satisfaction using by improving on-time shipments, automating clerical tasks, reducing inventory and providing solid information to make decisions on. For a complete analysis use our ROI survey.

The Shop Floor chaos is eliminated by proper scheduling and material control. Billing and delivery errors are eliminated using system automation.

The Seradex ERP system lets you "Build Your Business" by putting you in control of your organization.

Seradex ERP offers the functionality, technology platform and implementation expertise to help you realize the full benefits of an ERP solution.

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What Benefits will I get from ERP?

Here are some of the warning signs that your current software is limiting your business growth:

• Increasing customer complaints about poor service
• Using multiple systems for the same task
• Failing to get accurate, up-to-date information for decision-making
• Using handwritten notes because it's easier to jot it down than use the current system
• Having to enter the same data into more than one system
• Inability to expand the business due to limitations of current information system
• Lost or corrupted data

If you are experiencing any of these symptoms, you are a good candidate for a new information system. The return on investment from implementing an ERP system can be very attractive.

The Seradex ERP system will help deliver solid customer satisfaction using by improving on-time shipments, automating clerical tasks, reducing inventory and providing solid information to make decisions on. For a complete analysis use our ROI survey.

The Shop Floor chaos is eliminated by proper scheduling and material control. Billing and delivery errors are eliminated using system automation.

The Seradex ERP system lets you "Build Your Business" by putting you in control of your organization.

Seradex ERP offers the functionality, technology platform and implementation expertise to help you realize the full benefits of an ERP solution.

go to the top

What is the ROI and payback potential for an ERP system?

Here are some of the warning signs that your current software is limiting your business growth:

• Increasing customer complaints about poor service
• Using multiple systems for the same task
• Failing to get accurate, up-to-date information for decision-making
• Using handwritten notes because it's easier to jot it down than use the current system
• Having to enter the same data into more than one system
• Inability to expand the business due to limitations of current information system
• Lost or corrupted data

If you are experiencing any of these symptoms, you are a good candidate for a new information system. The return on investment from implementing an ERP system can be very attractive.

The Seradex ERP system will help deliver solid customer satisfaction using by improving on-time shipments, automating clerical tasks, reducing inventory and providing solid information to make decisions on. For a complete analysis use our ROI survey.

The Shop Floor chaos is eliminated by proper scheduling and material control. Billing and delivery errors are eliminated using system automation.

The Seradex ERP system lets you "Build Your Business" by putting you in control of your organization.

Seradex ERP offers the functionality, technology platform and implementation expertise to help you realize the full benefits of an ERP solution.

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What is the difference between ERP, MRP, MRPII and APS?

Manufacturing software systems have evolved in functionality over the years. The early systems were designated MRP (Manufacturing Resource Planning)systems. MRP systems had basic functionality for inventory control, bill of material processing and elementary scheduling. As more scheduling functionality was added newer software generations were called MRP II.

MRP II systems were eventually replaced with ERP (Enterprise Resource Planning)systems which added more applications like order processing, project management, maintenance and human resources. Today no manufacturing software vendor would designate their system as anything other than an ERP system.

APS (Advanced Planning and Scheduling) systems added more functionality again. An APS program includes the ability to optimize shop floor and supply chain scheduling. The program determines the best schedule given the multiple constraints of labor, material and equipment. Some ERP products include APS features. There are also separate APS products that integrate with existing ERP solutions.

Seradex ERP offers the functionality, technology platform and implementation expertise to help you realize the full benefits of an ERP solution.

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Does Seradex support Backflushing?

Traditional and standard costing systems track costs as products pass from raw materials, to work in progress, to finished goods, and finally to sales. Such systems are called 'sequential tracking systems' because the accounting system entries occur in the same order as purchases and production. Where management desires to track direct material and labour time to individual operations and products, then sequential tracking can utilized in Seradex ERP software.

The implementation of a just-in-time philosophy has necessitated changes. Backflush is a single step production process that typically occurs and the end of a production line. Seradex ERP supports several variations of Backflushing. In the most common a Work Order or Kanban card contains a bar code. When a product is packaged into a box or carton the operator wands the bar code. This triggers several events: A Carton Label is Printed. This lists the item, quantity, date, order and possibly customer if it is make to order environment

• The Open Quantity on the Work Order is reduced
• The items on the bill of material are reduced from Raw Material Inventory
• The finished goods inventory is increased by the carton quantity and standard cost
• The cost of the Finished Goods is based on Standard Cost of materials, labor and overhead

Backflushing simplifies costing since it ignores both labour variances and work-in-progress. While in a true just-in-time environment there would be no work-in-progress at all, there will, in practice, be a small amount of work-in-progress at any point in time. It is important that standard costs are close to actual costs to keep inventory costing reasonable accurate. Backflush accounting is ideally suited to a just-in-time philosophy and is employed where the overall cycle time is relatively short and inventory levels are low.

• Material Variances are calculated regularly through physical counts and the resulting inventory adjustments. Is scrap occurs manually system entries can be made to charge scrap to the work order
• Labor Variances are calculated monthly by comparing the labor absorbed at standard cost to the actual payroll expenditures listed in the GL accounts
• Monthly Overhead absorption is reported by Seradex and can also be compared to actual expenditures listed in the GL accounts

Actual and absorbed Labor and Overhead expenditures can be broken into categories and departments facilitating variance analysis.

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How does Strategic Planning affect ERP Projects?

Strategic planning is a management tool, period. As with any management tool, it is used for one purpose only: to help an organization do a better job - to focus its energy, to ensure that members of the organization are working toward the same goals, to assess and adjust the organization's direction in response to a changing environment. In short, strategic planning is a disciplined effort to produce fundamental decisions and actions that shape and guide what an organization is, what it does, and why it does it, with a focus on the future.

ERP systems provide support to execute strategic plans for even to the smallest manufacturing company. Your future competitive advantage is based on a series of uncertain events: how you deal with those events is your ticket to your success. Enterprise Resource Planning is a comprehensive tool for integrating accounting, strategic planning, sales order management, quality control, manufacturing, logistics and warehousing.

One section of your strategic plan should identify quantifiable time phased business objectives. Metrics should be developed around these goals and your ERP system should be reporting on any data that relates to your business objectives. In implementation Seradex project managers ensure that this is a fundamental corner stone of the project.

Sample Strategic Planning Metrics that can be driven from ERP Data:
• Achieve sales of $xx million by 200X
• Report annualized profits of $xx million in 200X
• Reduce average lead time to 5 days by 200x
• Reduce late orders to less than 2% by by 200x
• Achieve 3% cost reduction every quarter
• Employ xxx people including xx% technically qualified by 200X
• Have sales offices in xx key markets before 200X

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What is CRM - a definition?

CRM stands for “customer relationship management.” Simply stated, Customer Relationship Management (CRM) is about finding, getting, and keeping customers.

CRM is at the core of any customer-focused business strategy. It includes not only software but the people and business processes associated with sales and marketing. CRM provides a common view of the customer information and will help you increase sales to profitable customers. A CRM application is a single, integrated system that lets information flow freely between different departments. This acronym is used to describe a computerized system for maintaining and tracking all facets of relationships with business partners, from marketing to sales to support.

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