Glossary
ERP (enterprise resource planning)
An ERP is an integrated management system that brings a company's core activities, such as orders, inventory, purchasing, accounting and production, together in a single platform.
ERP stands for Enterprise Resource Planning, but the useful translation for a business owner is "integrated management system". It's the system that makes different business areas work together: when you record an order, the information automatically flows to inventory, purchasing and accounting, without having to re-enter it in several programs.
The underlying idea is to have a single source of truth for company data. Customer and supplier records, price lists, stock levels, orders and documents live in one system, so everyone works from the same up-to-date numbers instead of separate files that may not match.
ERPs vary a lot in size and complexity: there are lightweight solutions designed for small businesses and very elaborate platforms for larger, structured organizations. The more modules you turn on (sales, purchasing, inventory, production, accounting), the more powerful the system becomes, but also the more demanding it is to configure.
FAQ
A CRM focuses on customer relationships and sales; an ERP manages a company's internal operations, such as inventory, purchasing, production and accounting. They often coexist and exchange data: the CRM brings in the order, the ERP turns it into a shipment, an invoice and a stock movement.
