ERP means “Enterprise Resource Planning” and refers to the entrepreneurial process of planning and managing resources tailored to suit the market need as efficiently as possible. Through ERP, the operational processes and the associated value creation process shall be optimized. Especially for manufacturing companies, a successful ERP is existential in order to store all the materials required for production in sufficient quantity and at the right time.
Misleadingly, the abbreviation ERP is often used interchangeably with ERP systems. But while one refers to the operational process itself, the other involves technical implementation through IT solutions. In today’s business world ERP can hardly be realized without technical aids. An ERP system handles the resource planning and control of all business processes and operating areas of a company, such as procurement, production, sales, logistics, etc. All functions are linked together via a common platform.
An increasing number of providers are using ERP clouds. Using those clouds, it becomes possible to access the ERP system externally without having to operate the necessary programs locally. This allows worldwide access and also enables the involvement of customers or suppliers. Those can be integrated directly into the processes by means of an ERP cloud – for example, to schedule deliveries or adjust quantities. Advantages of using ERP clouds are the speedy and thus cheaper implementation, as well as the flexible application of the technology.« Back to Glossary Index