Enterprise resource planning (ERP) is a method of efficiently utilizing people, hardware and software to increase productivity and profit, thereby simplifying a company’s business processes. ERP may consist of many software applications or a single (but more complex) software package that smoothly disseminates data needed by a few or many unique business departments.
The need for enterprise resource planning (ERP) software grew with big business’ mandate for a centralized solution to manage all information system requirements. An ERP may consist of many different business modules, including the following:
In short, an ERP solution allows each department or business domain to be managed centrally while operating independently. Advantages may include interoperability of data, increased communication and increased data reliability through the utilization of a single database. ERP also enhances the quality of enterprise-wide decision making. For example, a customized order may move from the sales department to inventory control, then to invoicing to finance and to Manufacturing. Using an ERP, this type of process is an efficient, continuous series of events, allowing for easy individual order tracking.
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