What is ERP? ERP stands for Enterprise Resource Planning. It is software that connects a company’s main business activities in one system.
Companies use ERP to manage information across departments such as sales, finance, purchasing, inventory, manufacturing, and shipping.
How Does an ERP System Work?
An ERP system allows different departments to share information.
For example, when a customer places an order, ERP can connect the process:
Customer Order → Inventory → Shipping → Invoice → Payment
Instead of using separate spreadsheets and systems, employees can work with shared business information.
What Does ERP Manage?
ERP software can help manage:
- Sales and customer orders
- Finance and accounting
- Purchasing
- Inventory
- Manufacturing
- Warehousing and shipping
- Human resources
- Business reporting
Why Do Businesses Use ERP?
Businesses use ERP to reduce manual work, connect departments, improve reporting, reduce duplicate data, and make better decisions.
Popular ERP systems include SAP, Oracle, Microsoft Dynamics 365, and NetSuite.
In simple terms, ERP helps bring a company’s people, processes, and information together in one system.
Watch: What Is ERP?
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