Enterprise Resource Planning as a term is derived from
material resource planning. Enterprise resource planning systems (ERP) are
management information systems that integrate and automate many of the business
practices associated with the operation or production aspects of a company.
These typically include manufacturing logistics allocation
inventory shipping invoicing and accounting. Enterprise Resource Planning or
ERP software can aid in the control of many businesses activates like sales
delivery billing production inventory management and human Resource Management
Systems.
They are often called back office systems indicating that clients
and the general public are not directly involved. This is contrasted with front
office systems like customers relationship management systems that deal
directly with the customers.
ERPs are enterprise wide and cross functional. All
functional departments that are involved in production or operations are
integrated in one system. In addition to developed warehousing and shipping,
this would include accounting, human resources strategic and marketing management.
Enterprise Resource Planning system (ERP) integrate (or
attempt to integrate) all data and processes of an organization into unified
systems. A typical ERP system will use multiple elements of computer software
and hardware to achieve the integration. A key ingredient of most ERP systems
is these of a unified database to store data for the various systems modules.
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