ABSTRACT
This chapter explains a software tool called an enterprise resource planning (ERP) system. It highlights many problems with the use of these systems. The chapter shows how to use ERP system effectively, and why manufacturer will probably need one in some point in their business's life. The ERP system can also automate tasks, saving time and reducing double entry. Often, go-live dates for software launches get cast in stone and the whole business drives toward that date. ERP system provides a direct connection between the day-to-day operational transactions of a business and its finance system will be a necessary investment. However, poor implementation and/or overreliance on material requirements planning (MRP) functionality within an ERP system can lead to poor on-time delivery performance, high inventory, and high costs. To gain the benefits of an ERP system while ensuring supplier maintain high levels of on-time delivery at minimum inventory.
