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Unit 11: ERP-II
11.6 Benefits of ERP Logistics Package notes
11.6.1 central components
The process layer is the central component which reflects the transaction-based systems. ERP II is
web based, open and componentized. This is different from being web enabled, and the ultimate
ERP II concept may be implemented as a set of distributed web services.
ERP is the central component in the ERP II conceptual framework. The traditional ERP modules
like financials, sales and distribution, logistics, manufacturing, and human resources are still the
backbone of ERP along with additional modules like quality management, project management
or maintenance.
ERP II systems are based on business process management (BPM). ERP has been based on “Best-
practice” process reference models but ERP II systems build on the notion of the process as the
central model entity including tools to design (or orchestrate) processes, to execute and evaluate
processes (business activity monitoring).
BPM allows for a flexibility of ERP II as regards different business practices, but for specific
segments that otherwise would require problematic customization, like apparel and footwear
or the public sector, ERP II also has vertical solutions. Vertical solutions are sets of standardized
pre-configured systems with “add-ons” to match specific requirements or partial models in
CIMOSA terms.
11.6.2 corporate components
The analytical layer comprise the corporate components that enhance and extend central ERP
functions by providing decision support for the management of relations and corporate issues.
These components are not necessarily directly synchronized with the integrated database:
1. SCM systems support the planning and production of goods. For instance, SCM provides
information such as where the product is to be produced, the procurement of parts and
delivery schedules.
2. CRM systems facilitate the managing of a broad set of functions that primarily include the
customer identification process and customer service management.
3. SRM is the vendor side analogy to CRM aimed at the effective management of the supplier
base. SRM enables the enterprise to manage its supplier relations in their entire life-cycle.
4. Product lifecycle management (PLM) including product data management (PDM) enables
enterprises to bring innovative and profitable products to market more effectively,
especially in the evolving e-business environment. PLM enables extended enterprises to
harness their innovation process through the effective management of the full product
definition lifecycle.
5. Employee lifecycle management (ELM) is the integration of all aspects of information
relation to an employee from hiring to retirement from the company. ELM enables
enterprises to effectively manage their portfolio of competencies.
6. Corporate performance management (CPM) is an umbrella term that describes the
methodologies, metrics, processes and systems used to monitor and manage the business
performance of an enterprise. Thus CPM provides management with an overall perspective
on the business.
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