ERP and Accounting Software

ERP software (Enterprise Resource Planning) is a technical term for accounting, warehousing, inventory, order entry, etc. software that is fully integrated. This powerful software brings all the data in your enterprise together to provide you the best possible information to run your business.

ERP software goes beyond accounting for the operations in your business. Manufacturing software like MRP systems (Material Requirements Planning) allows you to take inventory, delivery times, vendors, manufacturing or assembly time, and processing time into account when you make commitments to customers. ERP software includes all of these plus HR, inventory software, warehouse software and perhaps shipping and receiving automation software.

ERP software begins with the basic financial management functions commonly found in accounting software:

• General Ledger
• Accounts Payable
• Accounts Receivable
• Payroll

Most vendors also add a suite of operational management software including the following:

• Inventory
• Order Entry
• Purchase Orders

These products are included in most software vendor ERP software systems. Beyond this, the features and the way those features are implemented vary widely. Some vendors use "bolt-on" third-party products to achieve almost all functionality in addition to this. We recommend that companies evaluate these bolt-on products carefully since the level and ease of integration of the products varies widely.

Other functionality you might be looking for includes:

• eCommerce (web store) web trade (integration with suppliers and customers)
• Manufacturing
• Warehouse management
• Capacity Planning
• Forecasting
• Customer Relationship Management (CRM)
• Customer Service
• Help desk
• Business intelligence
• EDI (Electronic Data Interchange)

In 1999 through 2001, eCommerce was seen as the new salvation for business. Companies spent huge amounts of money developing web sites. Some succeeded; many failed.

Today the ability to receive orders on the Internet is seen as an alternative business venue. It's like being in a virtual strip mall. Most major ERP software vendors have products that allow web ordering. These vary widely in function, features, and cost, but all are viable products for creating an Internet presence.

More businesses are realizing the benefits of customer and vendor linkages. EDI is an early example of this technology. Today the technology exists to exchange data with computers in real time. When your customer sells a single unit, your system can be notified. This technology resonates with possibility for improving the efficiency of the supply chain.

Lately forecasting, business intelligence, CRM, and warehouse management have been generating interest.

Businesses that establish reordering points for inventory are implicitly forecasting. All the formulas for EOQ, minimum and maximum require an assumption about what will be sold...what demand will be. Most of these formula have assumed that an average was a good forecast. Recent research reveals that this isn't true. More sophisticated methods of forecasting have been developed, and are available in a few ERP systems.

Business intelligence and CRM (as well as data warehousing and database marketing) are similar in concept. These use business data to identify trends and determine customer preferences. CRM also serves to store better data about interactions with customers.

Warehouse management attempts to maximize (a) use of warehouse space, and (b) use of warehouse personnel. Along the way, it can also increase accuracy and reduce inventory shrinkage through theft, damage, and loss.

All of these techniques require business understanding as well as software expertise. That is Data Guidance Group's point of difference: we know the technology and the business. Our process helps us gain a detailed understanding of your business operation and needs.

Data Guidance Group is headquartered in Memphis, TN and assists clients in Arkansas, Kentucky, Mississippi, and Tennessee in selecting and flawlessly implementing ERP software to manage their businesses. Contact us for more information.