A brief Introduction
ERP stands for Enterprise Resource Planning software.
An ERP is the main computer system upon which a business stores its information.
All of its inventory, its purchase orders, its bills, accounting, and more is stored in this system.
Some well-known ERP brands include SAP, Oracle, and Microsoft Dynamics. Open source ERP's include OpenERP.
Any company above a certain size must maintain its records on a computer.
Frequently, small businesses keep this in a spreadsheet.
However, once a company has grown to a certain size they usually use an ERP.
An ERP is capable of processing transactional data files which correspond to business transactions.
Import into your ERP to create a business transaction.
Export from your ERP to explain a business transaction.
How an ERP enables your trading
Your business information must be stored in a single, stable, computer system.
That computer system must be able process transactional data files (as explained above).
Typically this is done with an ERP.
Custom software could be configured to do the same thing.
In almost every case, yes.