What is Enterprise Resource Planning (ERP) Software?

Enterprise Resource Planning (ERP) is business management software which integrates all functional areas of the company. Including: Product planning, cost, marketing, sales, Inventory management, shipping and payment.

Enterprise resource planning is widely used an industry term. The main objective of ERP software is to facilitate the flow of information so business can take accurate decision. The ERP system automates many functions related to technology, services, operational activities, finance, Human resource planning, inventory, supply chain and shipping. Integration of all these core activities of a business process is easy and accurately performed by the ERP system.

Enterprise Resource Planning Software is used in big and large scale enterprise for effective management of the resources and planning. ERP System is billion dollar industry that supports in running multi functions of the business. Now a days small enterprise has also been increasing the use of ERP system in their business process. It is Vital organizational tool because it integrates many organizational processes and enable to gave error free transaction and production.

An ERP system uses database as an information repository and its also consider as Enterprise application. ERP software mainly develops for the manufacturing department because this department has to take more decision about the product planning, shipping, storage, inventory, maintenance, accounting and human resource requirements.

Followings are characteristic of Enterprise Resource Planning Software:What is Enterprise Resource Planning (ERP) Software?

– It uses common database that supports all applications.

– The ERP system integrates all process that operates in real time.

– installation of ERP system with data integration is not done in small simple step.


Following are some Functional area of ERP Software:

Financial Accounting: Its deal with all the transaction related to accounting and administrative process of the business organization

Management: It is include budgeting, costing, cost and expenses related management.

Human Resource planning: it is deal with recruiting, training, staffing, retirement, separation etc.

Manufacturing Process: All working tasks that related to manufacturing process like engineer, work order, quality control, bill of material, machine capacity, manufacturing process, project, flow etc. This is the biggest department from the viewpoint of different task involves. For Ex. Textile ERP

Order Processing: Order entry, pricing, shipping, inventory, sales analysis, reporting etc.

Supply chain management: It deals with supply chain planning, scheduling, purchasing, inventory, warehousing etc.

Project Management: It deal with project planning, analysis, structuring, costing, billing, the total time required and expense for that project.

Customer relationship Management: It includes the sales and marketing, services, customer contacts. ERP in Customer relationship management work as Business support system.

Data Services: Its deal with Customer, Supplier, employees etc.