Understanding the ERP Definition

ERP Definition: ERP is short for for Enterprise Resource Planning.

ERP Definition (Enterprise Resource Planning)

Enterprise resource planning (ERP) is a term used to describe the processes and software systems providing the necessary tools to run a business in the areas of Financial Management, Logistics, Manufacturing, Human Resources and extended Supply Chain operations.

To further the concept of an ERP Definition, often people will focus on the software aspects of ERP, but in reality, the processes defined within the company are the basis for ERP itself.   Taking a flow from an order through to the payment of the invoice is a key process. So also is the definition of a resource need (such as inventory) to the fulfillment of that requirement.  These business processes are key to understanding the ERP requirements and further in aligning a software tool to facilitate these business processes needs.

Learn more about: Enterprise Resource Planning

The term Enterprise Resource Management came from the concept that inventory, time, and people are all resources of the company and an integrated software solution should be a tool to manage their resources.  In an ideal world, you have just enough resources to satisfy customer demand and optimize cash flow.   Sophisticated ERP software aids in managing these resources.

The primary providers of ERP Software are SAP, Oracle, Microsoft, Infor, QAD, and Epicor. There are hundreds of smaller providers and niche software developers. For example, job shop erp software or process manufacturing software are two such niches. There are new players that are rising fast such as Plex Systems and other cloud based solution providers.

You can find a complete list of ERP software vendors here. You can learn more by reading throughout our site. You can discuss particular vendor solutions in our forums.

ERP Definition and descriptions from others:

What is ERP?
The ABC’s of ERP by CIO Magazine

ERP Definition