An ERP system manages the information needs of all company functions, including financial systems, human resources and payroll, logistics and distribution, purchasing, sales, and manufacturing. It consists of a single database and applications that allow employees in different departments to access and act on that data. For example, a polyurethane resin sale recorded in an ERP system automatically triggers the actions in the warehouse, on the plant floor, in the shipping department, and in accounting that are necessary to deliver and invoice the order.
Using the same information management software company-wide eliminates data integration problems that arise when a company operates a purchasing system from one vendor, an inventory management system from another, and a manufacturing control system from a third. Dealing with a single software vendor also facilitates software upgrades and maintenance.