Legacy system means old and traditional system which adopted only the physical procedures and process to meet the requirements. For example, as shown in the figure of legacy system, where the manufacturing department interacts with other department to process the necessary raw materials, like wise, customers could contact sales department, and than verify the stock availability at warehouse by the inventory department, and finally send consignment to the customer. This is the lengthy and tedious procedure to have the central objectives. If the system has introduced with ERP package or ERP software tools in integrates all the key functional areas of management with central ERP system. This system operates the whole system with integrated information and database system.

ERP is a company-wide computer software system used to manage and coordinate all the resources, information, and function of business from shared data stores. An ERP has own structure which is connected by the hardware and software units. All the ERP package modules are designed by the specified vendors who allow the business units to integrate and distribute the data from the centralized database ERP system, as it shown in. ERP software is made-up of several modules; each module contains different functional areas of an organization.

This module optimized the utilization of part, components and materials resource using production and sales forecasting using MRP, MRP-II, BOM etc,. This boost the manufacturing capacity.

It stream lines products of raw materials, it automates the process of identifying the potential suppliers, price negotiation, purchase orders, and delivery of goods etc. In this package of ERP modules SCM and SRM packages or systems using.

It facilities the process in maintaining an appropriate level of stock in the warehouse. In this CRM and SCM application are utilizes.

Sales modules implements function of order placement, order scheduling, shipping and invoicing. It is closely integrated with production, marketing, etc. SCM, CRM are they key software in this module.

HR modules are another area where the ERP system is implementing widely. It streamlines the management of human resources and human capital by routinely maintaining a complete employee database of contact information, salary details, attendance, payroll, performance evaluation, promotion etc.

It gathers all the data from various functional departments and grenades valuable reports like, profit and loss accounts, trading accounts and balance sheets statements.

All these modules of ERP have been supporting the concerned managers and create an integrated management system.

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