Glossary · Web & software

ERP (enterprise resource planning)

An ERP (enterprise resource planning) system is software that runs a company's core operations, such as accounting, inventory, purchasing, sales orders, and sometimes HR and manufacturing, from one shared database.

Also called: enterprise resource planning · ERP system · ERP software · business management software

An ERP is built from modules, one per business function, that all read and write the same data. When a sales order is entered, stock is reserved, purchasing sees what needs reordering, and the invoice posts to the accounts without anyone re-entering it. Products range from large suites such as SAP, Oracle NetSuite, and Microsoft Dynamics 365 to Odoo, which has an open-source edition.

A growing business often runs on separate accounting software, spreadsheets, and an inventory tool that disagree with each other. An ERP gives one set of numbers, so stock levels, costs, and margins can be trusted and month-end takes less effort. It matters most to companies that make, stock, or distribute physical goods, where a single order touches several departments.

ERP projects are demanding. They take time, require clean data, and oblige staff to change how they work, and heavy customization makes later upgrades harder. Many small businesses are better served by good accounting software connected to a few specialist tools. Define the processes you need before comparing products. We connect ERP and accounting systems to other business software and build custom web apps where a standard module does not fit.

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