Enterprise resource planning (ERP)
Essential for success in modern businesses, ERP, (meaning enterprise resource planning) is a type of software that integrates the management of day-to-day business operations such as:
• Finance and Accounting
• Human Resources
• Customer Relations
• Inventory and Product Management
Connecting these operations under one suite can boost company efficiency and allow for real-time assessment of core business processes. A range of data is collected and analyzed by the software of ERP, meaning the user is able to track resources, production and finances across different sectors of the business continuously. While ERP was at one time considered an enterprise-only tool, a broader ERP definition includes suites available to businesses of all sizes.
What is an example of an ERP system?
ERP systems have a diverse range of powerful yet flexible business applications. For example, ERP software can be used to create and maintain a cohesive, multi-functional database, allowing multiple divisions, such as management and sales, to collaborate with real-time synchronization – rather than wasting valuable time manually processing and creating reports. By streamlining workflow, managing information, and delivering actionable insights into trends and performance, ERP systems simultaneously increase productivity, mitigate the risk of errors, and ultimately, drive greater profitability. When effectively implemented, ERP software can lower costs while improving regulatory compliance, making ERP an indispensable tool for all types of businesses.