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Enterprise resource planning (ERP) refers to business software used to manage daily business activity. Accounting, sales orders, fulfillment, inventory, procurement, production, compliance, and supply chain operations are some of the information gathering centers ERP systems bring together.

A complete ERP suite also includes enterprise performance features that help plan, budget, predict, report on business cash flow and profitability.

ERP systems bring numerous business processes together and enable the sharing of information across a company's departments. The inclusion of vendors customers and employees to improve the transfer of needed information is often included.

By collecting business transactions from departmental sources, ERP systems exclude data duplication and allow for better data integrity, providing a single source of verification.

ERP systems are critical for managing thousands of businesses of all sizes and diligence, and ERP is necessary for these companies to compete in modern markets.