An Enterprise Resource Planning (ERP) system is a management information system that integrates and handles many of the business processes associated with a company’s production operations and distribution aspects for goods or services.
Core functions
- Finance & accounting — general ledger, accounts payable/receivable, budgeting
- Supply chain & logistics — procurement, inventory, warehousing, order fulfillment
- Manufacturing — production planning, bill of materials, shop floor control
- Human resources — payroll, time tracking, talent management
- Customer relationship management (CRM) — sales, marketing, service
Key characteristics
- Single centralized database — all modules share the same data source
- Real-time data — information flows across departments instantly
- Standardized processes — enforces consistent workflows across the organization
- Modular design — organizations deploy only the modules they need
Examples
- SAP S/4HANA
- Oracle ERP Cloud
- Microsoft Dynamics 365
- Odoo
- NetSuite