Articles

History And Evolution Of ERP - Considered As The Evolution Of MRP II

by Peter Filinovich Peter Filinovich
ERP or enterprise resource planning is integrated software used for enhancing business management. Implementation of ERP helps business owners to gain maximum profit at affordable cost. It controls the performance of all resources including accounting, manufacturing, sales and customer relationship management of an organization. Real time access to resource performance with periodic updates helps in modifying strategies as per the requirements of company. Today, there are versatile ERP software available in market for assisting company owners.

Choosing the right ERP software according to the needs of company is very important. Implementing the right ERP software helps in eliminating inventory shortages and product waste. It is an ideal companion for promoting your business in global market sector. Better planning of company infrastructure, reduced inventory cost, improved workflow with in single integrated system, reduced vendor dependence and improved customer relationship management are other core features of using ERP software in an organization. Now, let's see in detail the history and evolution of ERP.

According to studies, today's ERP can be considered as the evolution of manufacturing requirements planning or MRP II. It is a perfect blend of versatile manufacturing processes so as to form an enterprise wide system. Better access control from any part of the world is one among the highlighting advantages of this business management system. History of ERP date back to the year 1960 as an inventory control system.

Providing detailed reports of inventory requirements, market, production, sales and balance are some of the key features included under the functions of inventory control system. It was intended to maintain the appropriate stock level in warehouse. This inventory control system was then followed by material resource planning in the year 1970. This MRP system used software applications for production purposes. Meeting the requirements of finished goods, maintaining the production control system, tracking the present inventory level and controlling the operation were some among the key functions performed by material resource planning. SAP, Oracle and Baan are three fine examples of ERP systems introduced during 1970's.

Introduction of software application in manufacturing requirements planning is a notable change that occurred in the history and evolution of ERP. Better coordination of planning, production, marketing, distribution and sales were some among the core features of MRP II. Introduction of MRP II system during 1980's gave many benefits to business owners. Accessing capability only for business sector was a major draw back of this system. MRP II then followed the evolution and development of ERP system software in 1990's. Utilization of multi-module application software in ERP improved the control over business management.

Wide accessibility of software packages in ERP had helped business owners to earn maximum profit in global business sector. Integration of resources, improved performance with high accuracy, enhanced inventory control and better order tracking are some advantages of using ERP system software. Introduction of wireless technologies and integration to any application as per the requirements are some among the gemstones marked in the history and evolution of ERP system. Today, ERP is a perfect partner for all small and medium sized companies to achieve their business goal.

Read information on Causes of ERP Failure. Also know Low Cost ERP Software. Read the Definition of ERP and other information on enterprise solutions.
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About Peter Filinovich Freshman     Peter Filinovich

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Joined APSense since, May 7th, 2011, From Stanwood, United States.

Created on Jul 20th 2011 05:55. Viewed 2,516 times.

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