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ERP

ERP stands for Enterprise Resource Planning. It is business management software used to coordinate core operational processes such as finance, purchasing, inventory, fulfilment and reporting.

Primary topic
Technology
Difficulty
Beginner
Reading time
4 minutes
Last reviewed
June 2026
Also known as
Enterprise Resource PlanningERP System
Related topics
TechnologyArchitectureEcommerce
Explanation

What is ERP?

ERP software acts as a central operational system for many organisations. It helps manage business processes, data and workflows across departments such as finance, procurement, warehousing, manufacturing and customer service.

Why it matters

For manufacturers, distributors and ecommerce businesses, ERP is often the operational backbone that other systems depend on. Ecommerce platforms, order management systems, warehouse systems and reporting tools may all need to exchange data with ERP.

Example

A customer places an ecommerce order. The order may pass from the ecommerce platform into the ERP, where stock, pricing, customer account status, fulfilment and invoicing are managed.

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