ERP stands for Enterprise Resource Planning. An ERP is a software that
centralizes all the resources involved in a company’s operations.

What is an ERP? Definition

An ERP is an integrated computer system that centralizes all the resources involved in a company’s operations. It allows businesses to integrate different aspects of their business together such as production, logistics, inventory, and accounting.

The acronym ERP stands for Enterprise Resource Planning. It refers to a software or suite of software packages that integrate all the resources and data related to the operations of a company.

Traditionally, a business is divided in several departments, and each one uses a different software package to run their operations. An ERP software replaces those different packages to offer one single solution. It allows companies to run their logistics operations, CRM, accounting, inventory, or procurement from the same software, eliminating data duplication, facilitating communication, and increasing productivity throughout the company.

ERP: How it Works

The key feature of every ERP system is the central database. Instead of relying on various software with several databases, an ERP software allows the organization to enter, view, and manage the same information accross the entire organization.

To take a concrete example, this means that when a new customer is added into the system by the sales team, their order will automatically appear on the screen of the production department. Once the product is made, an item will be created and the shipping department can view and select this item on their screen. They can select the customer, view the information entered by the sales person and ship the object. As soon as the payment is completed, the transaction will automatically appear in the accounting system.

An ERP system is a complete loop that closes the gaps between the various deparments of a company.

ERP: What Departments are Included?

Whether you are estimating costs, managing labor, materials, and production, or tracking shipping and invoicing, an ERP allows you to manage the key operations of your business. Here are the main departments included in an ERP system:


An ERP lets you optimize schedules and routes, track items, and streamline entire the logistics department.


ERP systems allow you to oversee production lines, schedule resources, and manage teams.

Project Managment

An ERP will allow you to budget projects, schedule resources, and keep track of costs and profit ratios.


Most ERP systems offer CRM capabilities to increase revenue and develop customer satisfaction.


  An ERP software will streamline MRP capabilities and ensure products are always on stock at the cheapest price.


ERP packages optimize inventory levels, anticipate low stocks, and provide geolicalisation features.


ERP systems centralize all financial information to help manage assets, expenses and monitor cash flow.

The Business Value of ERP

The key feature of every ERP system is the central database. Instead of relying on various software with several databases, an ERP software allows the organization to enter, view, and manage the same information across the entire organization.

Data Centralization

Enter data once in the system and share it across the entire organization to eliminate duplicate entries.

Profits Increase

Replace manual processes with automated solutions to work faster, smarter, and increase profit margins.

Process Improvement

Establish clear processes within the software to ensure consistency throughout the organization.

Tracking Enhancement

With an ERP software, all items, resources, and key actions are tracked 24/7/365.

Accurate Costing

ERP systems track resources consumption to build accurate financial information at all time.

Accurate Inventory

ERP packages can tag, track, and locate every resource, ensuring 100% correct inventory.

Increase Sales

Manage and close more deals thanks to leads and customer management features.

Improve Customer Service

Manage all customer interaction with your brand throughout the same software to ensure consistency.

Automate Critical Functions

Automate time-consuming tasks by suppressing paper and accessing key information within seconds.



This step-by-step guide will help you select the perfect ERP for your organization.


What kind of return can you expect from your ERP investment? Calculate it yourself online:


Download this case study to understand the benefits an ERP can have on a business.

About ABIS

ABIS was founded in 1983, and in the 40 years since, we have established our niche in the steel sector. Our team continues to build upon industry best practices to offer the most comprehensive, robust business process management software available – the Adjutant Software Platform. We’ve built ourselves on the premise that you shouldn’t need any more than one great software to effectively automate your operations, and we’re determined to spend the next 40 years continuing to make business smarter across North America.

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At ABIS, we welcome the opportunity to speak to discuss how we can help equip your business with the tools it needs to succeed. Our solutions are built by our team and tailored for your industry.

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ABIS, Inc.
1415 North Loop West, Suite 1200
Houston, TX 77008