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__NOTOC__Enterprise resource planning as a term, derives from material resource planning. Enterprise resource planning systems (ERP) are management information systems that integrate and automate many of the business practices associated with the operations or production aspects of a company. These typically include manufacturing, logistics, distribution, inventory, shipping, invoicing , and accounting. Enterprise Resource Planning or ERP software can aid in the control of many business activities, like sales, delivery, billing, production, inventory management , and Human Resource Management Systems.
They are often called back office systems indicating that customerA customer is someone who purchases or rents something from an individual or organisation. Types of Customer Customers can be classified into two main groups; internal and external customers. An internal customer is someone who works for the organisation,s and the general public are not directly involved. This is contrasted with front office systems like customer relationship managementThe generally accepted purpose of Customer Relationship Management (CRM) is to enable organizations to better serve its customers through the introduction of reliable processes and procedures for interacting with those customers. A successful CRM strategy systems that deal directly with the customer.
ERPs are cross-functional and enterprise wide. All functional departments that are involved in operations or production are integrated in one system. In addition to manufacturing, warehousing, and shipping, this would include accounting, human resourcesThe term human resources is variously defined in political economy and economics, where it was traditionally called labor, one of three factors of production. Its use within corporations continues to define common conceptions of the term. Modern analysis, marketingMarketing is the craft of linking the producers (or potential producers) of a product or service with customers, both existing and potential. Some form of marketing arises naturally in all capitalist societies but is not limited to capitalist societies., and strategic managementStrategic management is the process of specifying an organization's objectives, developing policies and plans to achieve these objectives, and allocating resources so as to implement the plans. It is the highest level of managerial activity, usually perfo.
In the early days of business computing, companies used to write their own software to control their business processA process is a naturally occurring or designed sequence of operations or events, possibly taking up time, space, expertise or other resource, which produces some outcome. A process may be identified by the changes it creates in the properties of one or moes. This is an expensive approach. Since many of these processes occur in common across various types of businesses, common reusable software may provide cost-effective alternatives to custom software. Thus some ERP software caters to a wide range of industriesFor other uses of this term, see Industry (disambiguation An industry is an area of economic production which involves large amounts of upfront capital investment before any profit can be realized. The most successful industries in a given sector tend, to from service sectors like software vendors and hospitalA hospital today is a centre for professional health care provided by physicians and nurses. During the Middle Ages it could serve other functions, such as almshouse for the poor, or hostel for pilgrims. The name comes from Latin hospes (host), which is as to manufacturing industries and even to government departments.
