What is ERP?
ERP (Enterprise Resource Planning) integrates various departments of a business into one unified platform, making operations smoother and decision-making faster.
Story — Ramesh's Turning Point
Ramesh, owner of a small fabrication unit, struggled with paperwork and Excel chaos. When one big order failed due to a missing stock update, he realized he needed a central system — and that’s where ERP changed everything.
How ERP Works
ERP acts as the brain of a company. When Sales creates an order, Store updates inventory, Production gets a job card, Accounts raises an invoice, and dashboards update — all automatically in real time.
Key ERP Modules
- Store/Inventory: Material receipts, issues, and stock visibility.
- Production: BOM, job orders, and consumption tracking.
- Sales & Dispatch: Quotations, sales orders, packing lists.
- Accounts & GST: Invoicing, ledgers, compliance reports.
- HR & Payroll: Attendance, salary slips, compliance.
- Maintenance: Machine upkeep and downtime logs.
Practical Example — Order Flow
- Sales receives an order → creates Sales Order in ERP.
- ERP checks stock → auto-generates Purchase Request if required.
- Store issues materials to Production → stock auto-updates.
- Production completes job → triggers QC and Dispatch.
- Accounts auto-generates invoice and updates ledgers.
Try This — SME Readiness Checklist
- Where do you lose time daily? (e.g., stock check, approvals)
- Which department causes most follow-ups?
- Do you face GST or compliance errors frequently?
- Can ERP automate 3 tasks in your current workflow?
// Example: simple mapping Inquiry → Quotation → Sales Order → Material Check → Production → QA → Dispatch → Invoice → Payment // ERP removes manual entries and improves visibility at each step.
Key Takeaways
- ERP centralizes business data and automates workflows.
- Start small — begin with Store, Sales, and Accounts.
- Cloud ERP like VijayERP helps Indian SMEs grow affordably.