The ERP Terms Cheat Sheet

Looking into ERP systems, or working on one for the first time can be overwhelming. Not only are you on a new software that can be confusing and perplexing, but there are a lot of ERP terms that are unfamiliar to the general public. ERP, CRM, SCM, BI, these acronyms can give you a headache unless you know what they all mean. To get you up to speed, we’ve complied all the most popular ERP terms and acronyms for your reference when getting started with ERP.

  1. ERP
    This one may be obvious to some, but ERP or Enterprise Resource Management can be complex. ERP is the backbone of many companies across many different industries, from manufacturing to healthcare. The system carries applications that handle multiple functions across the business to automate most processes.
  2. HCM
    Also known as Human Capital Management. This function allows a business to keep track of employee data throughout their entire time at the company, from first day to retirement. This application allows you to track and managed skillsets, departments and roles, as well as what the cost is to the company and managing employee benefits.
  3. SCM
    SCM, or Supply Chain Management, automates a lot of the processes involved with getting a product to the customer. This application allows for quick forecasting of sales and the total cost of production for material and labor. You can also manage inventory, packaging and distribution.
  4. BI
    BI stands for Business Intelligence, and it the latest solution on the market that many businesses are taking advantage of. Business intelligence gives a thorough look into all your data, allowing for better decision making. It can pull information from across your ERP system, giving more depth to all your departments.
  5. CRM
    Customer Relationship Management is especially important for acquiring and retaining customers. It allows you to keep track of all new contacts, leads, opportunities and sales, so no potential customer is left without contact.
  6. Kanban
    Kanban is a lean manufacturing philosophy that originated in Japan with the automotive manufacturer Toyota. A Kanban system in ERP uses a two or three bin system that automatically signals a replenishment of product once the first “bin” is empty. Users can determine how many bins are used and how much product will fit in each bin.
  7. Billable Time
    This is the hours you are actually able to charge customers for. This is usually an agreement between a business and their customer. Employees need to be vigilant about logging their hours in order for a business to gain all the revenue they can from their billable time.
  8. KPI
    This is an approach to achieve business goals. KPI or Key Performance Indicators are decided targets to measure that indicate progress.
  9. Job Cost
    This method allows companies to record all costs over time that went into a project. At the end of the project these costs are then totaled and compared to what the company had originally planned.

These are just a fraction of the many ERP terms that exist. The more you work with the software, the more ERP terms you will come across. Once you have the basics down, the system will become easier to work with and your training in it will become a breeze.

 

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