ERP
noun
Enterprise Resource Planning: software that supports business processes such as purchasing, inventory management and finance through shared data.
The ERP system updates inventory once the warehouse has recorded the goods received.
A sales order affects more than the sales department. Stock needs to be reserved, a delivery scheduled and an invoice created. ERP connects these processes so that departments work with consistent information.
Modules that share data
An ERP system often includes modules for purchasing, manufacturing, logistics and accounting. The modules an organisation needs depend on its operations. Shared product and customer records remove the need for each department to maintain its own copy.
This only works when responsibilities are clear. Who can change a product record? When does an order count as delivered? Software can apply those rules, but it cannot decide them on the organisation's behalf.
Connecting other software
An ERP does not have to handle every specialised process itself. A separate Glossary · In briefcustomer portalA customer portal is a restricted online area where customers can view their own information and carry out tasks. Available information and features depend on their roles and permissions.Read more or planning system can exchange data through an Glossary · In briefAPIAn API is a defined way for software to exchange data or call functions in other software without needing to know how that software works internally.Read more. Define which system is authoritative for information such as prices and stock levels, and how to recover from failed synchronisations.