Enterprise Resource Planning (ERP) - An information system designed to integrate internal and external members of the supply chain.

ERP MODULES 1. Finance and accounting module o financial generation report o investment management o cost control analysis o asset management o capital management o debt management 2. Sales and marketing modules o pricing o availability of products o shipping options o special promotions o distribution requirements o transportation management o shipping schedules 3. Production and material module o production planning o bill of material generation o production costing o production schedules 4. Human resource module o workforce planning o employee scheduling o training and development o payroll and benefits o expense reimbursement o job description o organizational charts o workforce analysis EVOLUTION OF ERP First-Generation ERP - did not support the continuous planning needed in supply chain managemet Second-Generation ERP - its objectives are to leverage existing systems to increase efficiency in handling transactions, improve decision making, and support e-commerce. Supply Chain Management Software (SCM software)

enables strategic decision making along the supply chain which enables the capability of collecting business intelligence along the supply chain. Asset Management Tool (AMT) an extended enterprise supply chain analysis developed by IBM that allows for quantitative analysis of interenterprise supply chains. Application Service Provider (ASP) an vendor that sets up the system and runs it for the company.

BENEFITS OF ERP Technological Motivation replacement of disposable systems o improved quality and visibility of information o integration of business processes and systems o replacement of obsolete/older systems o acquisition of systems that support business growth Operational Motivation related to improving inadequate performance o reducing high cost structures o improving customer responsiveness o simplifying complex processes o supporting global expansion o standardizing best practices TANGIBLE BENEFITS o reductions in inventory and staffing o increased productivity o improved order management o quicker closing of financial cycles o reduced IT and purchasing costs o improved cash flow management o reduced transportation cost and logistics o improved on time delivery performance INTANGIBLE BENEFITS o improved visibility of corporate data o improved customer responsiveness o better integration between systems o standardization of computing platforms o improved flexibility o global sharing of information o better visibility in SCM processes COST OF ERP SYSTEMS (cindy walang meaning to basta yan lang ilagay mo malaki hehehe thanks mwaah! )