ERP is acronym for Enterprise resource planning It have three words : Enterprise, Resource, and Planning. The Last two words are irrelevant compared to first word. ERP application system is helpful for planning and managing the resources. There are many other applications who does the planning and resource management. But it is the enterprise part which is most important in ERP application system. The ERP system was developed and derived from the previous MRP (Materials Requirement Planning) system and MRPII (Manufacturing Resource Planning) system. ERP is one of the most critical components in today's information which is business focussed and it's also one of the fastest growing markets in the software industry. Various companies are using ERP system as an information system to coordinate business related information. ERP also help to manage business related processes using a single and common database and shared management reporting tools. It integrates the data and business processes of an organization into unified system. Usually ERP systems have many components including hardware and software, And to achieve integration, most ERP systems use a single common database for storing data related to various functions and business processes of the organization.
ERP application system supports a efficient operation of business processes by integrating throughout a business tasks related to sales, manufacturing, marketing, delivery, Inventory, logistics, accounting and staffing etc As it runs on single database various department can share information and communicate with each other more easily.[1] For example suppose we are processing and tracking of customer orders But it is very difficult to track status of order in different departments at a times. But with ERP application any department can easily track the status of customer’s order through central database.[3]
If the system is installed correctly then this integrated approach