Glossary of ERP Definitions

Below are links to articles covering ERP Definitions. Can’t find what you’re looking for? Then contact us! We’re always adding to our definitions and we appreciate suggestions from our readers.

  • Backflushing - When moving large amounts of smaller raw materials to the work area, sometimes the entries into the ERP system regarding […]
  • Capacity Planning - Analysis of items, work centers, labor, bills of materials (BOMs) and routings to estimate manufacturing capacity / output. In-depth comparison […]
  • Cycle Count - Periodic short-scope inventory checks prioritized by value to keep inventory accuracy high. This takes less time than a full physical […]
  • Discovery and Analysis - Initial assessment of ERP environment, related IT assets, complimentary business applications, in-depth review of project requirements and development of project […]
  • Floor Stock - Inventory regarded as low value / cost items (bolts, nuts, screws, etc.) that you wouldn’t keep track of individually. Items […]
  • Material Planning - – MRP – Materials Requirements Planning – Top down process – What to make and when – Using sales orders […]
  • Pilot Testing - End-to-end testing of accounting / business processes using manually entered data to ensure users can manage corporate operations using the […]
  • Third Party Logistics - Third-Party Logistics company that brokers shipments between client and shipping company. Client inventory is held in a third-party warehouse until […]
  • User Acceptance Testing - Phase of a project or implementation where line-of-business users test new functionality to ensure it meets specific client business requirements. […]
  • User Adoption - Line-of-business users learn and adopt the new system / functionality. Users who are used to following obsolete processes in performing […]
  • Work Center - Physical location where certain groups of machines or specific processes are completed in the manufacturing process. The work center typically […]