What is ERP?
ERP stands for Enterprise Resource Planning. It is a type of software package that uses one database and interface to bring together functions for various departments. This means that employees across an organization can see the same information about any order or process, determine what steps need to be taken next, and communicate more easily about how to complete a sale or project.
ERP was originally developed to help streamline the complex processes involved in manufacturing and was initially called MRP, then MRP II (Materials Requirements Planning and Manufacturing Resource Planning, respectively) before the name was switched to ERP.
What functions does an ERP solution provide?
ERP solutions focus primarily on the back end of the business, providing one database to keep track of all the essential administrative functions that go on behind the scenes. These might include:
Recent ERP solutions also provide front-end software such as CRM. This allows back-office staff to see real-time information about customer interactions such as technical-support issues and sales orders.
Do all ERP solutions incorporate every department?
Most often, the term ERP refers to large applications that replace a multitude of independent applications. But different companies have different ERP requirements, and there are many ways to implement a solution.