What is ERP? – Enterprise Resource Planning

Definition: Enterprise Resource Planning is the integrated management of main business processes, often in real-time and brought about by software and technology. On a farm, this would mean that business processes such as planting, harvesting, spraying, taking on labour, clocking, finances and human resources can all be integrated into a single software solution.

The benefits of implementing ERP software includes:

• ERP systems enforce real-time capturing of business data, which means real-time business information can be reported on;
• no longer having to capture the same data into multiple software programs and Excel spreadsheets;
• shared databases can be used for various purposes, eliminating numerous sources for reporting purposes;
• opportunities for employees to learn new skills by taking technology to lower levels in the business;
• the integration of business processes saves time and money;
• standardised naming conventions are enforced across the company, for example, chemical codes and descriptions in inventory and spray records;
• consolidates securing business data by bringing it together in one application.

Barriers to entry:

• ERP software and the implementation thereof can be expensive, and it is difficult to quantify the benefits that it will bring to the business. This makes cost-benefit analysis quite tricky.

At the end of the day, an ERP system needs to work for the business and not the business for the system.