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What is ERP (Enterprise Resource Planning)?

ERP is software that helps manage business processes. Often a suite of integrated applications that collect, store, manage, and interpret data from different departments and enables information-sharing between these departments.

ERP software essentially is centralizes data from different departments and the software applications each department already uses. This enables companies to reduce inefficiencies, and make data-driven decisions.

Areas that an ERP can connect include:

  • Planning
  • Purchasing
  • Inventory
  • Sales
  • Marketing
  • Finance
  • Human resources

Traditionally, this kind of software has been most appropriate for large businesses with siloed business operations. However, an ERP may be appropriate for a wider range of businesses as ERP technology becomes more flexible and affordable, and midsized and small business operations become increasingly complex.

Regardless of whether ERP software is appropriate for a particular company, the concepts of resource planning, data consolidation, systems integration are important considerations for most businesses.

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