ERP (Enterprise resource planning) is an industry term for the broad set of activities supported by multi-module application software that helps 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. ERP can also include application modules for the finance and human resources aspects of a business. Typically, an ERP system usesor is integrated with a relational database system. The deployment of an ERP system can involve considerable business process analysis, employee retraining, and new work procedures.
Possibly the best known ERP system is by SAP. If you select all the modules you have a set of integrated modules for both financial and management accounting, purchasing, invoicing, payroll and various HR functions.
Implementation of an ERP system typically entails major changes of process. This fact is often neglected (inadequate training given to staff, reasons for major changes not explained etc) leading to benefits that are much less than expected.