What is ERP?

You’ve been told, “We need ERP! Find me a good system.” You say, “Sure thing,” while thinking to yourself, “I really wish I knew what ERP was.” Rest assured you aren’t the first person to be confused.You’ve been told, “We need ERP! Find me a good system.” You say, “Sure thing,” while thinking to yourself, “I really wish I knew what ERP was.” Rest assured you aren’t the first person to be confused.

ERP stands for Enterprise Resource Planning. It’s a single, integrated software system that consolidates all of your business operations in a single interface: accounting, finances, human resources, marketing, supply chain management, logistics, etc.

Software ThinkTank has taken the time to think through the evolution of ERP and it has come a long way…

In the Beginning MRP

ERP grew out of the systems developed for manufacturers in the 1960s, Material Requirements Planning (MRP I) software. Initially, MRP I was used to determine ideal inventory levels through identifying stock requirements, setting targets and monitoring usage, plus preparing inventory reports. Scheduling of production processes such as material purchases and operations are eventually rolled in.

The 1970s saw the evolution to Manufacturing Resource Planning (MRP II) which incorporated coordination of the entire manufacturing process: inventory control, parts purchases, product planning and distribution.

The Early Years ERP

In the early 1990s, MRP II is expanded for enterprise-wide functionality, integrating processes beyond manufacturing – customer relationship management, project management, human resources, finance, etc. Enterprise Resource Planning (ERP) was born.

ERP systems are used by companies in numerous industries in addition to manufacturing – you’ll also find them in professional and non-profit organizations, governments, hospitality, construction, oil and gas, healthcare, high-tech and more.

Today ERP

In the early 2000s, the term ERP II was coined to describe web-based software that enables both internal and external (i.e. customers and suppliers) to access data in real-time.

The huge advantage of using today’s ERP systems is integrating business processes to provide employees a single place to share information within and between departments, plus externally with clients and suppliers. Today’s ERP systems improve communications, productivity, performance and speed, in turn boosting your bottom line.

Future ERP

ERP continues to evolve, adding functionality that provides further efficiencies to businesses across multiple sectors.  The future of ERP is bright.  Routinely upgrading your ERP systems ensures you are benefiting from the latest advances in technology to optimize your business.

ERP stands for Enterprise Resource Planning. It’s a single, integrated software system that consolidates all of your business operations in a single interface: accounting, finances, human resources, marketing, supply chain management, logistics, etc.

Software ThinkTank has taken the time to think through the evolution of ERP and it has come a long way…

In the Beginning MRP

ERP grew out of the systems developed for manufacturers in the 1960s, Material Requirements Planning (MRP I) software. Initially, MRP I was used to determine ideal inventory levels through identifying stock requirements, setting targets and monitoring usage, plus preparing inventory reports. Scheduling of production processes such as material purchases and operations are eventually rolled in.

The 1970s saw the evolution to Manufacturing Resource Planning (MRP II) which incorporated coordination of the entire manufacturing process: inventory control, parts purchases, product planning and distribution.

The Early Years ERP

In the early 1990s, MRP II is expanded for enterprise-wide functionality, integrating processes beyond manufacturing – customer relationship management, project management, human resources, finance, etc. Enterprise Resource Planning (ERP) was born.

ERP systems are used by companies in numerous industries in addition to manufacturing – you’ll also find them in professional and non-profit organizations, governments, hospitality, construction, oil and gas, healthcare, high-tech and more.

Today ERP

In the early 2000s, the term ERP II was coined to describe web-based software that enables both internal and external (i.e. customers and suppliers) to access data in real-time.

The huge advantage of using today’s ERP systems is integrating business processes to provide employees a single place to share information within and between departments, plus externally with clients and suppliers. Today’s ERP systems improve communications, productivity, performance and speed, in turn boosting your bottom line.

Future ERP

ERP continues to evolve, adding functionality that provides further efficiencies to businesses across multiple sectors.  The future of ERP is bright.  Routinely upgrading your ERP systems ensures you are benefiting from the latest advances in technology to optimize your business.

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