What is ERP-system

Digital School: What is an ERP-system?



ERP-systems, or Enterprise Resource Planning which is the whole name, is a business managing software that a business can use to collect, store, manage and interpret data across different parts of the business.

What does it include?

It usually includes:

  • Manufacturing or service delivery
  • Inventory management
  • Product planning, purchase
  • Marketing and sales
  • Shipping and payment

What does an ERP-system do?

ERP-systems provides an integrated view of core business processes, often in real-time, using common databases maintained by a database management system. ERP-systems track business resources, such as cash, raw materials and the status of business commitments. It tracks everything from orders to payroll.

This is a vital tool to use for any kind of business.

Are there different types of ERP-systems?

Yes, there are hundreds of ERP systems, and you can categorize them into Generalist, systems like SAP and Oracle that serve a variety of industries with common customizations or modules specific to certain verticals. Industry Specific, which are usually much smaller companies that create an ERP solution to work only in some specific places like grocery distribution or retail. You can also list subcategories like discreet manufacturing ERP versus process manufacturing.

What are some related systems?

Many tasks in a company today needs computer support. For this, a number of other systems have been developed. Sometimes they are included as part of the ERP system, but just as often as independent systems. Examples of such systems are:

  • CRM, Customer Relationship Management – for management of customer and supplier contact
  • SCM, Supply Chain Management – for the management of the supply chain (orders to subcontractors, supplies, etc.)
  • MES, Manufacturing Execution System – for control and monitoring of production processes
  • LIMS, Laboratory Information Management System – for the handling of samples in connection with manufacturing
  • PDM, Product Data Management – for the management of (complex) products, which gathers information about the product itself

To become more digital, switching to a cloud based ERP system can be highly beneficial.

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