What is an ERP?

What is an ERP?

ERP (Enterprise Resource Planning) refers to business software solutions for controlling business processes within a company. 

 

ERP stands for Enterprise Resource Planning. It is an integrated software solution that controls all business processes of a company in the areas of production, sales, logistics, finance and human resources. With an ERP solution, all operational processes of a company can be managed by integrating management functions in one system. 

 

The goals of ERP software are: 

 

  • Optimization of business processes 
  • Reduced costs and increased revenue 
  • More efficient processes 
  • Better evaluations and higher planning quality 

     

    An ERP system (Enterprise Resource Planning) consists of various modules. Each ERP module focuses on a specific area of your business. 

     

    The modules are interconnected in the ERP system and are based on a central database. With the ERP software, cross-departmental processes can be controlled efficiently. 

     

    The following modules belong to an ERP system: 

     

    • Accounting and financial management 
    • Warehouse and inventory management and logistics 
    • Personnel and payroll accounting 
    • Sales and marketing 
    • e-commerce 
    • Supply chain management 
    • Production 
    • Sales management 
    • Procurement  

         

        They are used in all operating areas, from administration to controlling. They can be either holistic or specially designed and fulfil various tasks for the provision and further processing of information. This simplifies and automates work processes. This results in savings of time, costs and effort for the company. 

         

        More and more applications are integrated into ERP software via the Internet or the company network. These can be, for example, modules for customer relationship management or applications to extend value creation through e-commerce, e-business and other electronic processes. The size of the respective company determines the requirements for ERP software. Small and medium-sized enterprises (SMEs) usually do not have integrated controlling and accounting modules. In addition, there are numerous industry solutions that are specially tailored to the requirements of different industries.