ERP — now there’s a software acronym you don’t hear every day. Exactly what is ERP software, you ask? ERP stands for “Enterprise Resource Planning.” ERP software is a system that allows medium-to-large businesses automate their distribution, financial, human resources, manufacturing, marketing, sales, and project management functions. Whew, that’s a lot!

With a focus on accounting, ERP software systems allow companies to plan and identify which resources are necessary to fulfill customer responsibilities. These systems typically employ a relational database to provide control over inventory and to deliver customer service functions, including order tracking.

That’s a pretty tall order …

Lean manufacturing is an oft-sited goal. Limiting the amount of inventory by tying it to actual orders helps keep the lid on costs. You’ll need an effective ERP system to ensure that inventory volumes are under control. Like Goldilocks, you don’t want too much or too little. Inventory levels should be “just right” to keep the line running at optimal levels. The faster your inventory turns, the better.

Keeping the customers happy is always a good core principle. With proper implementation, you can reduce sales order fulfillment times, and get the goods into your customers’ hands. Not only will your customers be pleased, but your bean-counters will be, as well. The faster you ship, the faster you bill.

You won’t find a shelf full of shrink-wrapped Enterprise Resource Planning software at your local CompUSA or BestBuy store. (Although it might be fun to ask.) This is a highly specialized field and the tickets tend to be large. ERP software developers include: Epicor, IBM, i2, Made2Manage, Manugistics, Microsoft/Great Plains, Oracle, SAP, SSA, Syspro, WinMan, and others.

ERP software is a huge topic. Thankfully, there are lots of resources on the web where you can read up on the many benefits and choices. If you are using ERP software, we want to hear from you for a follow-up article. If you have a good ERP software story to share, please email me at erpsoftware-at-geekbooks.com