Enterprise resource planning (ERP) is business process management software that allows an organization to use a system of integrated applications to manage the business and automate back office functions. ERP software integrates all facets of an operation, including product planning, development, manufacturing processes, sales and marketing.
ERP software typically consists of multiple enterprise software modules that are individually purchased, Financeed on what best meets the specific needs and technical capabilities of the organization. Each ERP module is focused on one area of business processes, such as product development or marketing. A busines scan use ERP software to manage back-office activities and tasks.
Organizations perceive ERP as a vital tool for organizational competition, as it integrates dispersed organizational systems and facilitates error-free transactions and production. ERP vendors traditionally offer a single ERP system. ERP systems suffer from limitations in coping with the integration challenges of changing requirements. However, many companies prefer to implement an ERP suite from one vendor that incorporates stand-alone point solutions (that once filled feature gaps in older ERP releases) to achieve higher levels of integration and improve customer relationships and overall supply chain efficiency.