Definition: Enterprise Resource Planning

What is Enterprise Resource Planning?

Enterprise Resource Planning (ERP) is a business management software that allows organizations to manage various day-to-day activities such as accounting, procurement, project management, inventory management, customer relationship management, and human resources in a centralized manner. It integrates all these functions into a single system, thus providing a comprehensive view of a business's operations and data.

Much like other data management software (such as PIM and MDM), ERP plays a vital role in creating a single, reliable view of the data, streamlining and automating certain business processes, and maintaining data quality and integrity.

What are some features of ERP?

ERP software typically includes a range of modules that can be customized to meet the specific needs of a business, and they can be integrated with other software systems, such as eCommerce platforms or customer relationship management (CRM) software. Some common modules are:

Finance and Accounting: Manages financial transactions such as accounts payable, accounts receivable, and general ledger accounting.
Inventory Management: Tracks inventory levels, manages stock movements, and ensures that products are available when needed.
Human Resources: Manages employee information, payroll, benefits, and performance evaluations.
Supply Chain Management: Manages the flow of goods and services from suppliers to customers, including procurement, production planning, and logistics.
Customer Relationship Management: Tracks customer interactions, manages sales leads, and provides customer support.