What is Enterprise Resource Planning (ERP) primarily responsible for managing?

Enterprise Resource Planning (ERP) systems are primarily designed to integrate and manage a company’s core business processes in a unified system. They facilitate the flow of information across various departments, ensuring that all parts of the organization work together efficiently.

The correct choice reflects that ERP systems focus primarily on managing tangible assets, including inventory and raw materials, as well as financial resources such as budgets, cash flow, and financial reporting. By consolidating data on these assets and resources, ERP systems provide businesses with a comprehensive view of their operations, enabling better decision-making and resource allocation.

While other areas like human resources, marketing initiatives, supply chain logistics, and customer relationship management are important aspects of a business, they are more specific applications or modules that can be integrated within an ERP system. However, the overarching function of ERP is the management of core business resources, which includes both tangible assets and financial assets, ultimately supporting the entire operational framework of an organization.