Enterprise Resource Planning System
The greatest tool to simplify your business processes
Brief History of ERP System
The Enterprise Resource Planning System did not just form itself out of thin air. ERP is a system with a lot of history dating back 100 years ago. Before ERP, there is the Economic Order Quantity (EOQ) model, developed by Ford Whitman Harris in 1913.
From EOQ to MRP
EOQ is a paper based manufacturing system that was used for production scheduling. However, in the 1960s, the concepts of EOQ are then further improved into Manufacturing Requirement Planning (MRP) which does more than just production scheduling.
Growth of MRP
from MRP to MRP II
After MRP, Manufacturing Resource Planning II was then developed in year 1983. In the past, MRP II was the key software when it comes to architectural component or integrating manufacturing processes such as, purchasing, scheduling, contract management and etc.
as an Essential Business Tool
By year 1990, the advancement of technology increased the need for business process integration, thus a new category of business management system is introduced. The system is now known as the Enterprise Resource Planning (ERP).
What is ERP System?
The Enterprise Resource Planning System (ERP System), is a business management system that helps simplify daily business processes. It helps businesses perform well through improved efficiency, accuracy, and transparency. Accounting, sales performance tracking, human resource management (HRM), supply chain management (SCM), data storing/analysis, Key Performance Index (KPI) tracking, customer relationship management (CRM), and many more can be integrated into one complete automated system through ERP.
The Business Values of ERP System
Improve Business Insights
Through the implementation of the ERP system, business owners and managers will be able to get a better insight into all information and analytics of the business.
Enhance Collaboration and Efficiency
Data and information are readily accessible through integration. Communication and collaboration among departments can be vastly improved, thus promoting efficiency and effectiveness in business operations and management.
Lower Management and Operational Costs
Costs on acquiring new resources to manage inventory and operation can be lowered. With lesser costs, companies will be able to manage financial risks more effectively through maintaining financial stability.
Enhance Customer Services
The customer relationship management (CRM) function in the ERP system can help to enhance the customer services of businesses. With an ERP system, businesses will be able to stay connected with their customers and at the same time provide necessary support based on each customer’s needs.