Choosing the right enterprise resource planning (ERP) solution is an important decision. Your ERP solution is the backbone of your business-and making the right choice can mean the difference between winning against the competition or becoming obsolete. So it’s important to have a basic understanding of some common terminology surrounding ERP solutions. Below are 7 common ERP Terms and their meanings from the Ramco Blog.
1. Human Capital Management
This refers to the support system responsible for managing employee data right from recruitment till retirement, in any organization. It includes tracking, managing and analyzing the skillsets, department, education, roles, achievements, cost to company and other benefits of each and every employee.
2. Financial Management
This is the process of managing cash inflow and outflow, advance budgeting, tracking operational expenses, controlling and decision-making
3. Customer Relationship Management (CRM)
CRM is one of the most commonly used and important terms you come across. CRM refers to the methodology or processes involved in acquiring new customers and managing existing customers. The aim is to ensure smooth relationship with customers through effective sales and services support, helpdesk, lead management, field sales tracking and reports.
4. Supply Chain Management (SCM)
SCM deals with management of inventory, procurements, packaging, distribution, sales and all other necessary steps involved in supply of any product to the customer.
5. Production Control
All activities involved in controlling the production process are collectively termed as production control. Managing orders, material planning, production floor management, quality control etc. are some of the important activities in production control.
6. Business Intelligence (BI)
This is the latest buzz word! BI refers to the set of tools that facilitate the senior management to make better decisions by providing a wide range of data and information. The information is provided in graphical or tabular formats. Typically, BI acts like a decision support system.
7. Product Life Cycle
In engineering terms, product life cycle refers to the different stages a product goes through right from ideation, design, prototyping, testing, manufacturing to packaging and distribution. In marketing terms, this refers to the time period during which the product is available in the market for sale. The different phases involved are introduction stage, growth stage, maturity, market saturation and decline stage.