Enterprise resource planning (ERP) is 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 and human resources.

It integrates all departments and functions across a company in a single computer system that is able to serve all those different department's particular needs. An ERP system also automates business processes by placing them into a useful format that is standardized and common for the whole organization.

ERP systems increase productivity. Because an ERP system integrates data and processes across multiple departments and locations, it allows a company to move product faster, process orders quicker, invoice customers more rapidly and reconcile shipments sooner.

Advantages of ERP

i. Improving internal business processes.

ii. Improving company performance.

iii. Reducing IT expenses and labor costs.

iv. Improving interactions between internal employees and external organizations