ERP stands for Enterprise Resource Planning. ERP is an enterprise-wide information system that facilitates the flow of information and coordinates all resources and activities within the business organization. Functions typically supported by the system include manufacturing, inventory, shipping, logistics, distribution, invoicing, and accounting. Some solutions now embed customer relationship management functionality. A wide variety of business activities including sales, marketing, billing, production, inventory management, human resource management, and quality control depend on these systems. The erp system assists in managing the connections to outside stakeholders as well as enhancing performance management. It uses a centralized database and usually relies on a common computing platform. It provides the user a unified, consistent, uniform environment. ERP solutions evolved from applications focused on materials requirements and resource planning and computer integrated manufacturing. The Enterprise Resource Planning term came about when software developers were searching for a name that would more aptly describe these broader systems. These new solutions provided functionality that encompassed other applications in addition to manufacturing.
ERP is an enterprise-wide information system that facilitates the flow of information and coordinates all resources and activities within the business organization.
Of all the software an organization can deploy, ERP has potentially the most direct impact on reducing costs.
ERP solutions are effective for reducing costs through improving efficiency and decision-making.
Competitive advantages arise to firms that can contain costs so that increased revenues translate into higher profits.
Effective solutions open to door to vast business process improvements as indicated by better customer service, smoother functioning business, decision support, eliminating IT barriers to growth, and the coordination of various business activities