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ERP is an acronym meaning Enterprise Resource Planning.

ERP is a business management tool that integrates all facets of a business to improve efficiency. It is usually a software package or solution most often associated with the manufacturing environment, but is applicable and configurable to all business environments. ERP is a business tool that management uses to operate the business day-in and day-out.

It is usually comprised of several modules such as a financial module, a distribution module, or a production module. Each of these modules shares information that is housed within a single database structure. This creates full integration and prevents multiple storage locations of the same information, eliminating redundancy and improving efficiency. ERP helps to break down barriers between departments within a company.

For example, the sales department may be selling 33% more product than the production department can produce. By utilizing an ERP system, the sales department, production department, operations management, shipping, financial department, purchasing department and quality management department all have access to the up-to-date information that is needed to coordinate and operate smoothly within any manufacturing environment.

Traditional business computer information systems were designed so that separate systems would manage different processes; these systems would provide reports and analyses of events which had already taken place. Unfortunately, such systems do not provide real-time data flow in which up-to-date information can be used to actually control events. Under these systems, data was mostly historical and could not be accessed quickly by various departments.

ERP brings all departments and functions across a company under the umbrella of a single, integrated software program.

Since it runs off a single database, all the various departments of a corporation can easily share information and communicate with each other. This integrated, real-time approach can have a tremendous impact on the accuracy, efficiency and processing time of your organization.

For further information, see the following links:

http://erp.ittoolbox.com/

http://www.erp-software-guide.com/

http://www.erpfans.com/