ERP-Enterprise Resource Planning

ERP is often a confusing terminology but to put it in simple terms: ERP is an acronym meaning Enterprise Resource Planning. It is a software package/solution most often used within the manufacturing environment. ERP is a business tool that the management uses to operate the business for the day-in and day-out. It is usually comprised of several modules such as a financial module, a distribution module and 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 produces. 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.