what is erp software

Enterprise Resource Planning (ERP) is a type of software that organizations use to manage day-to-day business activities such as accounting, procurement, project management, risk management, compliance, and supply chain operations. ERP is the integrated management of main business processes, often in real-time and mediated by software and technology. ERP systems can be local-based or cloud-based, and they are designed to collect, store, manage, and interpret data from many business activities. ERP modules are integrated into one complete system and share a common database to streamline processes and information across the enterprise. ERP software can include capabilities for procurement, supply chain management, inventory, manufacturing, maintenance, order management, project management, logistics, product lifecycle management, risk management, enterprise performance management (EPM), human resources/human capital management. ERP is critical business software that collects information from various departments in a common database, enabling leaders to monitor the pulse of a company using a single vision of the organization. In summary, ERP is a platform that companies use to manage and integrate the essential parts of their businesses, and it allows businesses to unify people, core business processes, and technology across an organization.