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Enterprise Resource Planning (ERP) amalgamates the information, resources, and activities in a business/company to maximize their use within the business processes. ERP is basically a process or an approach that helps in consolidating all of a company’s departments and functions and binds them together as a single computer information system that services each department according to its specific needs. And simultaneously links the company to customers and vendors.

Enterprise resource system converges people, hardware and software into an efficient and effective production, service and delivery system that creates profit for the company. Adding this type of planning in business management, which is wide spread over the organization, ensures that employees gain productivity and the activities efficiently performed at the right time with minimum wastage.

Prior to ERP, departments may be considered as independent. As a department’s function is completed, it may no longer be concerned about what happens afterwards.  Thus the management of different departments will have to go through a series of procedures and may find it difficult to take out the information they require from other departments in order to commence their work.

With the use of ERP systems, all the elements in the supply and production chain are made easily accessible to those who require the information. This leads to efficiency in managing customers and improves dealing of the company within as well as outside the company. An advantage in having an ERP system is that it saves energy consumption along with data managements. The savings of hardware and storage, along with operational efficiencies in the departments result in a measurable profit for the company.

ERP has some limitations. The efficient use of the system is mainly dependent on how the workers utilize it. This means the workers must be properly trained to use the system; companies usually attempt to reduce the cost of training. One of the biggest problems that occur when using an ERP system is that it is hard to customize. To suit the needs and structure of the company the system might turn out be expensive and may bring limitation in its activities.

Supply chain describes a longer channel, stretching from raw materials to components to final products that are carried to final buyers. The supply chain consists of upstream and downstream partners. Upstream from the company is set of firms that supply the raw materials, components, parts, information, finances and enterprise needed to create a product or service. Where as downstream is composed of marketing channels, distribution channels, wholesalers, retailers performing vital role in connecting the firm and it’s customers. The term supply chain maybe too limited, it takes a make and seek view if the business. It suggests that raw materials, productive input and factory capacity should serve as the starting point for market planning. To handle the supply chain matters Supply Chain Management is done.

Supply chain management (SCM) is the unique design of each company supply chain that enables it to deliver superior value to customers. It is used to manage upstream and downstream value added flow of materials, finding and relating information amongst suppliers, company, resellers and final consumers.

Supply chain management keeps a check on the network of supply chain through a record of all the retailers, wholesales, production, distribution and sales, so that the amount of error and probability of problems arising is minimized.

Supply chain comes across a series of changes on a global scale, as increasing competition, demand-driven supply networks, shorter product life cycles, and the emergence of increasingly complex distributed business models.

Supply chain management strategies are developed that lower costs, increase efficiency, and enhance customer services. Many fail due to a lack in considering the real world supply chain conditions. Supply Chain Management solutions that are designed for the 21st century enables demand-driven supply chain, and also allow companies to get tangible results by extending the execution of supply chain.

Supply Chain Management solutions include Fulfillment Coordination, Supplier Ennoblement, Returns Management, Field Service Logistics, Warehouse Management, and Shipping Execution.

Enterprise resource planning software is an interlink between the different departments within the organization, which helps the employees in accessing their desired information of stocks, profits, sales and purchases to other departments easily without wasting time and money. Where as a Customer relationship management (CRM) consists of sophisticated software and analytical tools that integrate customer information from all sources, analyze it in depth and apply the results to build stronger customer relationships.  CRM integrates everything that a company sales, service and marketing teams know about individual customers to provide an overall view of the customer relationship where as ERP is a single information system which consists of information regarding each department in an organization.

Enterprise resource planning and customer relationship management both are useful for an organization. ERP is used to bring efficiency and effectiveness in the organization’s activities and procedures. And by implementing ERP the organization saves hardware and software costs along with improved efficiency, which plays a role in increasing profits. CRM is useful in maintaining and building profitable customer relationships, by delivering superior customer value and satisfaction. Companies use it so that they can provide higher level of customer service and develop deeper customer relationship. CRM is used to pin point high value customers, target them more effectively, cross sell the company’s products and create offers tailored to specific customer requirements.

Functional approach is used for the purpose for which an object or person may be mainly used or suited. It is an approach in which a factor may be dependant on one or more factors. Functions are responsible to fulfill certain functions in a certain process

Where as the process approach is a systematic series of actions done performed in a sequence, which are done to achieve an objective or an end. For example: the assembly line process. Process approach is a continuous progression of operations or functions.

The advantages for IT support for these strategies may be that the function and process will make effective and efficient use of the better technology. The firm may experience reduced costs. Once the workers have learnt the use of IT systems the business strategies will be easy to implement.

The disadvantages for IT support may consist of inefficient use of the system if the workers are not trained, the firm may have to train the workers to put the IT systems to proper use. If  the functions and process are not compatible with the IT systems, the systems may become useless or in need of redesigning.

With the increase in IT a firm may change its business strategies to a sustainable competitive advantage. It may reduce costs by using the newly available IT techniques in a variety of ways, which include on line ordering and order processing to eliminate sales calls and to decrease ordering costs. It could use IT based inventory control systems and database systems which may reduce storage and hardware costs of the company. Often business processes are dependent on human activities, with the introduction of IT support the need for labor may be reduced thus the firm may cut down its labor force.

With IT advancement may affect a firm on both functional and process approaches. The functions may become easy to achieve making the process faster for the firm.