In today's dynamic and turbulent business environment, there is a strong need for organizations to become globally competitive. The guide to competitiveness is to better understand customers and to deliver value-added products and service in the shortest possible time. In order to produce goods tailored to customer requirements and provide faster deliveries, an enterprise must be closely linked to both its suppliers and its customers. It needs to have efficient planning and control systems that enable good synchronization among all of its processes. This, in turn, demands the integration of the business processes of an enterprise.

ERP is a method for efficient and effective planning of all the resources of a manufacturing company. It is built of a variety of functions linked together: Business Planning, Production Planning, Master Production Scheduling, Material Requirements Planning, Capacity Requirements Planning, and the execution system for capability and priority. Outputs from these functions will be integration with financial reports, such as business plans, purchase commitment report and budget reports.