Literarily, ERP refers to Enterprise Resource Planning software. In general, ERP is an industry term for the broad set of activities supported by multi-module application software that help a manufacturer or other business manage the important parts of its business, including product planning, parts purchasing, maintaining inventories, interacting with suppliers, providing customer service, and tracking orders. Typically, an ERP system uses or is integrated with a relational database system. In practice, ERP does not live up to its acronym. It does not do much about planning or resource planning.

So, why do I need to use ERP?

Remember the word "E" or enterprise. This is true ambition of ERP. It attempts to integrate all departments and functions across a company onto a single computer system that can serve all those departments particular needs. The integration streamlines internal business processes and improves productivity of a company.

To be concise, ERP software offers the following benefits:

1. ERP integrates all aspects of the business processes including: manufacturing, design, customer services, financial, sales and distribution. By integrating business processes and people anywhere in your company, you can enjoy more efficient work flow and improved productivity.

2. Nowadays, retailers and consumers push for lower prices, better quality and quicker delivery. ERP implementation shows your determination to head for those direction. Confidence of your business partners and consumers will be increased.

3. ERP provides the right information to the right people at the right time anywhere in the world, enabling you to improve productivity, enhance decision making and promote communication between coworkers, customers and vendors.

4. For better ERP software, it helps to reduce or eliminate duplicate work, and automates operational tasks and provide easy access to information. ERP, therefore, can deliver significant time savings.

5. Advanced ERP software has the ability to be customized to the extent that screens can be remodeled, fields can be edited and the architecture modified through progressive installation processes. In addition, advanced ERP software can be operated in a secured, web-based environment. These features provides flexibility and convenience in implementation and operation.

6. Some multi-lingual ERP software can perform automatic translation enables almost every style detail to be viewed in several languages including English, Chinese, and etc. It improves the effectiveness of communication.

7. Manufacturing companies often find that multiple business units across the company make the same widget using different methods and computer systems. ERP standardizes the manufacturing processes and improve quality.

8. ERP helps business process flow more smoothly and improves the efficiency of fulfillment process. It leads to reduced inventory. Eventually, it decreases the overall business cost.

At its simplest level, ERP provides a way to integrate all your business process. To get the most from the software, you have to get people inside your company to adopt the work methods outlined in the software. If the people do not agree with the method and the system has no flexibility to be customized, ERP projects will be failed. Therefore, you should choose ERP software wisely.