ERP is an acronym which stands for Enterprise Resource Planning. ERP is a common term for the business management systems that most companies utilize to organize and streamline their daily procedures. ERP Systems usually incorporate the following capabilities: Inventory control or Warehouse Management, Accounting, Supply Chain Management (SCM), Customer Relations Management (CRM), Human Resources (HR) Management, Scheduling or Advanced Planning and Employee Training.

ERP Software is often offered as a standardized package and marketed under the term “Best Practices” to trick businesses into believing that a rigidly structured software is not only usable, but will improve their business productivity. Although Best Practices are not without merit, a system built around generic Best Practices will rarely work well for each specific business without substantial changes to the software.

So why do so many companies seek software with Best Practices for their industry? Usually businesses are fooled by propaganda spread by the large software companies. Such software companies have one goal – sell as much software as possible without modifying it in any way (due to the high cost of re-programming it). The problem with this model is that most companies need software that is flexible. At any given company certain procedure can be optimized, but other practices have been perfected for their specific circumstances. These perfected procedures are what make most companies profitable. If the mamoth software vendors had their way, all businesses would use the same software – their software. But if all businesses used the exact same software then where would they get their competitive edge? How would they innovate and outsmart their competition? The answer is that they wouldn’t, they couldn’t with pre-packaged software.

The best ERP systems are tailored for each business. To take advantage of continuous improvement opportunities, businesses need flexible software. Additional advantages of agile system include: user-friendly interfaces, software that reflects your terminology and goals, no unnecessary menus, screens or reports, and the ability to improve the software as your business needs change. The point is that configured software is modified to meet the requirements based on the circumstances, so one does not have to change their effective processes to conform to the software.

Finding an ERP system that will stand the test of time is not easy. Flexible ERP solutions have the capability to expand their functionality as time goes by. Agile ERP leaves effective business practices in place while allowing you to modify the procedures that require improvement. When purchasing a system that will be utilized for many years, flexibility is priceless.

If you're looking for more information about ERP systems you might want to take a look at Find ERP Systems. They have a nice website that has information on ERP systems, vendors and best practices.