ERP stands for Enterprise Resource Planning, but for a small business the plain meaning is this: one connected system that runs your core operations, instead of a dozen disconnected tools and spreadsheets.
A manufacturing ERP usually ties together quoting, sales orders, production tracking, inventory, purchasing, and invoicing. The key is that all of them share one set of data. A quote becomes an order becomes production becomes an invoice, and the information carries through automatically instead of being retyped at every handoff.
Unlike accounting software, which tracks the money, an ERP manages the operational reality behind it: what is being made, what materials are on hand, and where each job stands. The best manufacturing ERPs reach all the way to the shop floor, letting workers update job status from tablets and phones built for real conditions.
An ERP leans on solid product data, especially the bill of materials for each product. Read What Is an ERP? for the full guide.