ERP is defines as an integrated software package which integrate all the department of an organization.

Several department of an organization are marketing, sales, finance, production etc. Since an ERP package integrates these entire departments, thus the performance of an organization will be improved. It is used to manage the important part of business including product planning, purchasing, maintaining inventories, customer service etc. Every department has its own computer system optimized for their particular work but an ERP system combines them all together into a single computer through integrated system approach. In short ERP system provides a single database where business transaction are recorded, processed, monitored and reported. ERP system does not replace the computer of a particular department rather it integrates all the department of an organization into a single computer and provides a flexible database. Benefits of an ERP System or reasons for growth of ERP

Effective utilization of resources Improvement in business performance Reduction of inventory due to JIT approach Integration of information i.e. integration of all the department of an organization. Sharing of common data and information Global Adaptation Improvement in the quality of the product at the same price ERP targeted all types of business organization whether large business or small business organization Lowers the total cost in supply chain management through JIT approach. Eliminate limitation in legacy system i.e. traditional system Order fulfillment improvement Improvement in customer service.