Enterprise Resource Planning - ERP

AAA

DEFINITION of 'Enterprise Resource Planning - ERP'

A process by which a company (often a manufacturer) manages and integrates the important parts of its business. An ERP management information system integrates areas such as planning, purchasing, inventory, sales, marketing, finance, human resources, etc.

INVESTOPEDIA EXPLAINS 'Enterprise Resource Planning - ERP'

ERP is most frequently used in the context of software. As the methodology has become more popular, large software applications have been developed to help companies implement ERP in their organization.

Think of ERP as the glue that binds the different computer systems for a large organization. Typically each department would have their own system optimized for that division's particular tasks. With ERP, each department still has their own system, but they can communicate and share information easier with the rest of the company.

RELATED TERMS
  1. Critical Path Analysis - CPA

    A process by which projects are outlined and sequenced to have ...
  2. PERT Chart

    A project management tool that provides a graphical representation ...
  3. Closed Loop MRP

    A system used for production planning and inventory control, ...
  4. Flexible Manufacturing System - ...

    A method for producing goods that is readily adaptable to changes ...
  5. Bill Of Materials - BOM

    A comprehensive list of raw materials, components and assemblies ...
  6. Materials Requirement Planning ...

    One of the first software based integrated information systems ...
Related Articles
  1. Fundamental Analysis

    Vital Link: Manufacturing And Economic Recovery

    Manufacturing output is one of the clearest signs that an economy is recovering from a recession.
  2. Investing

    Who's The Better Financial New Source: The Motley Fool or Seeking Alpha

    This is a comparison of two of the most popular investment research sites: The Motley Fool and Seeking Alpha.
  3. Typically, SPEs are subsidiaries of a larger corporation.
    Investing

    How Special Purpose Entities Help Fight Risk

    A special purpose entity, sometimes called a special purpose vehicle, is a legal entity created for one very limited, particular task. Typically, SPEs are subsidiaries of a larger corporation.
  4. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.
    Professionals

    What is a SWOT Analysis?

    SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. SWOT analysis is a management tool used to identify strategies for success. It may be used to guide individual thinking, group ...
  5. Personal Finance

    Supply Chain Management Jobs Are Booming

    There has been huge growth in supply chain management, both in the number of positions open and the range of responsibilities assigned to those positions.
  6. Investing Basics

    Using Appreciative Inquiry To Solve Management Problems

    In its purest form, appreciative inquiry is a powerful tool for shifting the focus of an organization to something much greater than its bottom line - although the eventual outcome will often ...
  7. Federally registering your brand name or logo offers the broadest protection against potential trademark infringement.
    Investing

    How to Register Your Trademark

    Federally registering your brand name or logo offers the broadest protection against potential trademark infringement.
  8. steps of how to file a patent and a brief summary of each step
    Investing

    Filing A Patent

    Want to patent your invention or design? Here's a complete step-by-step guide to the process.
  9. The decision to pursue a patent, trademark or copyright depends on the type of intellectual property you’re trying to shield.
    Investing

    Patents, Trademarks and Copyrights: The Basics

    The decision to pursue a patent, trademark or copyright depends on the type of intellectual property you’re trying to shield.
  10. when is it a good idea to patent an idea? At what stage of the development of the idea should you patent it? Does it matter if it matters what type of idea you have?
    Investing

    Protecting Your Idea: Should You Patent It?

    At what stage of development should you patent an idea – and which ideas can you patent? Here's how to decide and what to do next.

You May Also Like

Hot Definitions
  1. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  2. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  3. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  4. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  5. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
  6. Annual Percentage Rate - APR

    The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents ...
Trading Center