What is ERP management?

ERP: enterprise resource planning English version. ERP was first proposed by Gartner Group Consulting Company in the United States in 1993. As the most advanced enterprise management mode in the world, it not only embodies the most advanced enterprise management theory in the world, but also provides the best solution for enterprise information integration. It unifies the logistics, people flow, capital flow and information flow of an enterprise for management, so as to make maximum use of the existing resources of the enterprise and maximize the economic benefits of the enterprise. Its main purpose is to comprehensively balance and optimize the management of comprehensive resources such as people, finance, materials, information, time and space owned by enterprises, coordinate the management departments of enterprises, carry out business activities around market orientation, improve the core competitiveness of enterprises, and thus obtain the best economic benefits. So ERP is first of all a software and a management tool. IT is a combination of IT technology and management ideas, that is, advanced management ideas use computers to achieve the management goals of enterprises. \ x0d \ x0d \ The core purpose of ERP \ x0d \ The core purpose of ERP is to realize the effective management of the whole supply chain, which is mainly reflected in the following three aspects: \x0d\ 1, which embodies the idea of managing the whole supply chain resources. \ x0d \ In the era of knowledge economy, it is impossible to effectively participate in market competition only by the resources of one's own enterprise. It is also necessary to bring suppliers, manufacturers, distribution networks, customers and other parties involved in the business process into a close supply chain, effectively arrange the production, supply and sales activities of enterprises, and meet the needs of enterprises to use all market resources of the whole society to carry out production and operation quickly and efficiently, so as to further improve efficiency and gain market competitive advantage. In other words, modern enterprise competition is not the competition between individual enterprises, but the competition between one enterprise supply chain and another. ERP system realizes the management of the whole enterprise supply chain and meets the needs of market competition in the era of knowledge economy. \x0d\ 2。 \x0d\ ERP system, which embodies the idea of synchronous engineering of lean production and agile manufacturing, supports the management of mixed production mode, and its management idea is manifested in two aspects: First, the idea of "lean production LP(Lean Production)", which is a business strategy system proposed by Massachusetts Institute of Technology (MIT). That is, when an enterprise organizes production by mass production, it brings customers, sales agents, suppliers and cooperative units into the production system. The relationship between enterprises and sales agents, customers and suppliers is no longer a simple business relationship, but a cooperative partnership with * * * interests. This kind of partnership constitutes the supply chain of enterprises, which is the core idea of lean production. The second is the idea of "agile manufacturing". When the market changes and enterprises meet specific market and product requirements, the basic partners of enterprises may not be able to meet the requirements of new product development and production. At this time, the enterprise will organize a short-term or one-off supply chain composed of specific suppliers and sales channels to form a "virtual factory", regard suppliers and cooperative units as components of the enterprise, and adopt "synchronous engineering" to organize production, so as to bring new products to the market in the shortest time and keep products at all times. \x0d\ 3。 The planning system in ERP system mainly includes: master production plan, material demand plan, capacity plan, purchasing plan, sales execution plan, profit plan, financial budget and human resource plan. These planning functions and value control functions have been completely integrated into the whole supply chain system. On the other hand, the ERP system defines the accounting subjects and accounting methods related to the transaction, so as to automatically generate accounting entries when the transaction occurs, and ensure the synchronous record and data consistency of capital flow and logistics. Therefore, according to the present situation of financial funds, we can trace the ins and outs of funds, further trace related business activities, change the situation that funds information lags behind material information, and facilitate the realization of process control and real-time decision-making.