ERP is an industry acronym for Enterprise Resource Planning, but even the full name doesn’t give a great explanation of what ERP does. Broadly, ERP refers to a system that automates and integrates a company’s core business elements to increase efficiency and simplify operations. It is a comprehensive system that includes all the software pieces you might need to run your operations.
The purpose of ERP software is to have one complete system that supports and integrates all of these functions, in order to streamline processes and information across an entire organization. By creating a smooth flow of information that is always in sync, employees across all divisions (for example, accounting and sales) have access to the same, consistent information.