In today’s highly competitive markets, organizations can create a competitive advantage through the successful implementation of Enterprise Resource Planning (ERP) systems. ERP works with different technologies, including the Internet of Things (IoT). IoT uses a unique Internet protocol to identify, control, and transfer data to individuals as well as databases. The data is collected through IoT, stored on the cloud, and extracted and managed in through ERP. In this study, we review the challenges, open issues, applications, and architecture of the IoT-based ERP. For this purpose, we review and analyze the latest IoT-related articles to present the unique features of the IoT and discuss its impact on ERP. The results show sensors and devices connected to the Internet can manage the stored data processed in the cloud through ERP without human intervention. We also discuss the challenges and opportunities in the relationship between ERP and the IoT risen by the introduction of the cloud.