What is ‘Enterprise Resource Planning’ (ERP)
Enterprise resource planning (ERP) is a process by which a company (often a manufacturer) manages and integrates the important parts of its business. An ERP management information system integrates areas such as planning, purchasing, inventory, sales, marketing, finance and human resources.
ERP is most frequently used in the context of software. As the methodology has become more popular, large software applications have been developed to help companies implement ERP.
ERP which Automates the Business Process Dynamically
The Core Components of an ERP System
Think of ERP as the glue that binds the different computer systems for a large organization. Typically, each department would have its own system optimized for that division's particular tasks. With ERP, each department still has its own system, but it can communicate and share information easier with the rest of the company.
The ERP software functions like some a central nervous system for a business. It collects information about the activity and state of different divisions of the body corporate and makes this information available to other parts where it can be used productively.