A further extension of MRP II whereby a single system embraces and integrates all aspects of business operations into a single database application. ERP is an industry term for the broad set of activities supported by multi-module application software that help a manufacturer or other business manage the important parts of its business, including product planning, parts purchasing, maintaining inventories, interacting with suppliers, providing customer service, and tracking orders. ERP promises one database, one application, and one user interface for the entire enterprise, where once disparate systems ruled. Taking information from every function it is a tool that assists employees and managers plan, monitor and control the entire business. A modern ERP system enhances manufacturers' ability to accurately schedule production, fully utilize capacity, reduce inventory, and meet promised shipping dates.

ERP can also include application modules for the finance and human resources aspects of a business. Typically, an ERP system uses or is integrated with a relational database management system (Microsoft SQL Server, ORACLE, etc.) The deployment of an ERP system can involve considerable business process analysis, employee retraining, and new work procedures.