The Key Characteristics Of Enterprise Resource Planning

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The key characteristics of Enterprise Resource Planning (ERP) are as follows. Firstly, it comprises of “an integrated system that operates in (or near) real time without relying on periodic updates”, according to (SHEILDS, 2001). That is, it automatically circulates information and data across departments and does not require manual updating by any workers. Thus, it comprises of a worker-independent and fully automated operating system. Secondly, it consists of “a common database that supports all applications”, according to (SHEILDS, 2001). That is, Enterprise Resource Planning (ERP) system consists of a master database in which all the information and data from each of the processes and/ or various functional departments is gathered and thereby consequently disseminated to each of the other processes and/ or various functional departments. In the context of integrating the processes of supply chain function, this characteristic would imply the following. There would be a master database that would gather information and data received from various working units associated with inbound logistics (i.e. process of getting raw materials from suppliers), warehousing (i.e. process of stocking the work in process goods and/ or finished goods), and outbound logistics (i.e. process of delivering finished goods to customer). And after gathering the information and data received from all working units associated with each of the processes in the supply chain, there would be
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