| Enterprise Resource Planning are management information systems (MISs) that integrate and automate many of
the business practices associated with the operations or
production and distribution aspects of a company engaged
in manufacturing products or services.
Enterprise resource planning is a term derived from manufacturing
resource planning (MRP II) that followed material requirements
planning (MRP). ERP systems typically handle the manufacturing,
logistics, distribution, inventory, shipping, invoicing,
and accounting for a company. Enterprise Resource Planning
or ERP software can aid in the control of many business activities,
like sales, delivery, billing, production, inventory management,
quality management, and human resources management.
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 eBusiness systems such as eCommerce,
eGovernment, eTelecom, and eFinance, 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 in one system. In addition to manufacturing,
warehousing, logistics, and Information Technology, this
would include accounting, human resources, marketing, and
strategic management.
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