ERP

ERP is often a confusing terminology but to put it in simple terms: ERP is an acronoym meaning Enterprise Resource Planning. It is a software package/solution most often used within the manufacturing environment. ERP is a business tool that management uses to operate the business day-in and day-out. It is usually comprised of several modules such as a financial module, a distribution module, or a production module. Each of these modules share information that is housed within the database structures on which the ERP system was coded. ERP helps to break down barriers between departments within a company. For example, many times the sales department may be selling 25% more product than the production department can produce. By utilizing an ERP system, the sales department, production department, operations management, shipping, financial department, purchasing department all have access to the up-to-date information that is needed to operate smoothly within any manufacturing environment

In ERP (Enterprise Resource Planning) solution there is only one database that is used by all departments, such as Sales, Production, Finance and Accounting, Maintenance and Engineering, Purchasing, etc. ERP applications contain several modules such as production, finance and accounting, sales and distribution modules, etc. those modules are totally integrated and need only one database (to ensure no duplicate data). Each module consists of the best business practice that can be implemented for that company's industry, for example a manufacturing company. ERP software should only require some customization to fit the requirements of the business process.

One main difference between non-packaged software and ERP, is the number of databases. When you develop a program for each department with a unique database, then you must integrate each database. In this situation, you must maintain several databases.

In one sentence, ERP is a combination of business management practice and technology, where Information Technology integrates with your company's core business processes to enable the achievement of specific business objectives.