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What is it and what are its advantages What is an ERP system ERP short for Enterprise Resource Planning stands for software that enables enterprise resource planning. It processes basic data about the compa production services customer service sales logistics warehousing and financial and accounting processes. ERP systems are based on central databases into which information related to various levels of operation of the organization is entered. This makes them available to authorized users throughout the company. Therefore there is no need for time consuming data exchange or merging of individual databases.