Advance Search

Enterprise Resource Planning (ERP)

Enterprise resource planning (ERP) is a method of efficiently utilizing people, hardware and software to increase productivity and profit, thus simplifying a company’s business processes. ERP may include many software applications or a single (but more complex) software package that smoothly disseminates data required by two or more unique business departments.



The need for enterprise resource planning (ERP) software grew with big business’ mandate for a centralized solution to manage all information system requirements. An ERP may consist of many different business modules, including:

  • Manufacturing
  • Human Resources/Payroll
  • Sales
  • Inventory
  • Supply Chain/Partners
  • Finance and Accounting
  • CRM

In short, an ERP solution allows each department or business domain to be managed centrally while operating independently. Advantages include interoperability of data, increased communication and increased data reliability through the use of a single database.

ERP also enhances the quality of enterprise-wide decision making. For example, a customized order may move from the sales department to inventory control, then on to invoicing to finance and manufacturing. By using an ERP, this type of process is an efficient and continuous series of events that allows for easy individual order tracking.


Types of ERP Systems


There are different types of  ERP software. These types are divided by business size, functional levels, and deployment. So let’s now look at the different types of ERP Software:


Small business ERP: It is designed to meet the needs of small businesses. Small business ERP is also called as a lightweight ERP. It is like a SaaS (software as a service) model that includes all the aspects of manufacturing, accounting, sales and business management.


Open-source ERP: Open-source ERP is a software whose source code is publicly available. The solutions given by Odoo gives developers the flexibility to develop and integrate their own apps into the ERP.


Vertical ERP: It is industry-specific ERP. Often, vertical ERP vendors are startups or smaller companies that try to focus on a niche, such as, construction, supermarket distribution or retail fashion.


Generalist ERP: Cloud ERP software are generalists. The process works across industries.These solutions have strong customization and integration to match varying industry requirements.