Enterprise Resource Planning (ERP)
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Enterprise resource planning, ERP, is a term derived from material resource
planning. ERP systems typically handle the manufacturing, logistics,
distribution, inventory, shipping, invoicing, and accounting for a company.
ERP software can aid in the control of many business activities, like sales,
delivery, billing, production, inventory management, and human resources
management. This automated service makes it very simple to do such business,
especially for a larger scale business as they become overwhelmed.
ERPs are often called back office systems indicating that customers and the
general public are not directly involved. This is contrasted with front
office systems like customer relationship management (CRM) systems that deal
directly with the customers, or the e-Business systems such as eCommerce,
e-government, e-Telecom, and e-Finance, or supplier relationship management
(SRM) systems that deal with the suppliers.
ERPs are cross-functional and enterprise wide. All functional departments
that are involved in operations or production are integrated into one
system. In addition to manufacturing, warehousing, and shipping, this would
also include accounting, human resources, marketing, and strategic
management.
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