ERP stands for “enterprise resource planning.” The definition of enterprise resource planning is, essentially, an integrated software solution used to manage a company’s resources. Business planning systems have been evolving for decades, and ERP, enterprise resource planning, is the current generation.

ERP’s immediate predecessors, MRP (material requirements planning) and MRP II (manufacturing resources planning), focused mainly on managing the manufacturing and accounting resources of a company. Today’s ERP systems now integrate all business management functions, including planning, inventory/materials management, engineering, order processing, manufacturing, purchasing, accounting and finance, human resources, and more.