What is Enterprise Resource Planning (ERP)?

Enterprise resource planning, or ERP, is an integrated software system that connects multiple departments within an organization, allowing the sharing of data and management information. ERP systems are designed to ease the flow of information within an organization and aid decision-making.

But most supply chain and procurement organizations are moving away from ERPs and legacy systems, which tend to obstruct operational transparency and prevent holistic efficiency improvements. Instead, organizations are embracing next-generation, cloud-based platforms, which go beyond the traditional procurement objectives — such as spend analysis, supplier management, sourcing and optimization — and deliver sophisticated demand forecasting, production scheduling and inventory management.

Related Terms

What is E-Procurement?What is Enterprise Resource Planning (ERP) System?What is Ethical Procurement?What is eSourcing?What is eTender?