What is an ERP (Enterprise Resource Planning) system and where is it used? What is an ERP (Enterprise Resource Planning) system and where is it used? | Shipit.fi | Shipit

ERP (short for Enterprise Resource Planning) refers to an enterprise resource planning system — a comprehensive business management system. It is software that brings a company’s core processes and functions into one place, enabling information to be managed, shared, and used efficiently across different departments.

What does an ERP system do?

An ERP system automates and integrates a company’s daily and recurring operations, such as:

  • Financial management and accounting

  • Inventory and materials management

  • Purchasing and procurement

  • Sales and customer data

  • Human resources and payroll

  • Supply chain and logistics

  • Project management and reporting

All of these modules share a common database, eliminating data silos and ensuring that different departments have access to real-time, consistent information.

Why is ERP important?

An ERP system provides companies with several key benefits:

  • Improved transparency: A single, unified view of all business operations

  • More efficient information flow: Data moves seamlessly between departments

  • Automation: Repetitive tasks can be automated, reducing errors

  • Better decision-making: Real-time data supports smarter business decisions

  • Scalability: ERP grows along with your business

ERP does not simply replace individual systems — it integrates them into one unified solution, reducing manual work and duplicate data entry.

Where are ERP systems used?

ERP systems are widely used across many types of organizations:

Small and medium-sized businesses

– Helps manage growth and streamline processes without relying on multiple separate systems.

Large enterprises and corporations

– Provides a scalable solution capable of managing complex processes and large volumes of data.

Manufacturing and production

– ERP helps optimize production, inventory, and materials usage.

Logistics and distribution

– ERP integrates orders, transportation, and inventory into one system, improving supply chain control.

Service companies and retail

– ERP efficiently connects sales, customer data, and financial information flows.

When should an ERP system be implemented?

A company should consider implementing an ERP system when:

  • Information is difficult to manage across multiple systems

  • Business growth increases process complexity

  • There is a need to automate routine tasks and reduce errors

  • Real-time reporting is required

  • Improving supply chain and financial management is a priority

An ERP system can deliver significant benefits when a business operates across multiple areas simultaneously (such as sales, inventory, finance, and procurement) and information must flow quickly and reliably between teams.

An ERP system is a core business application that integrates and automates essential processes under one platform. It improves transparency, saves time, reduces errors, and enables better decision-making — especially in growing and complex business environments.

Shipit TMS integrates seamlessly with ERP systems

Shipit’s TMS solution is easy to integrate with a company’s ERP system as part of a unified and automated logistics process. While the ERP manages orders, customers, and financials, Shipit TMS takes care of transportation management — with data flowing in real time between systems without manual work.

We offer ready-made integrations with multiple ERP and WMS systems, enabling fast deployment and ensuring that transportation, shipment data, and tracking work seamlessly as part of your daily operations.

Learn more about Shipit’s ERP and WMS integrations:
https://shipit.fi/en-US/enterprise-resource-planning-erp-and-warehouse-management-systems-wms