Enterprise resource planning trend since 1960s - 2000s
Timeline System Description
1960s Inventory Management & Control
The combination of information technology and business processes of maintaining the appropriate level of stock in a warehouse.
Identifying inventory requirements, setting targets, providing replenishment techniques and options, monitoring item usages, reconciling the inventory balances, and reporting inventory status.
1970s Material Requirement Planning (MRP)
Utilizes software applications for scheduling production processes.
MRP generates schedules for the operations and raw material purchases based on the production requirements of finished goods, the structure of the production system, the current inventories levels and the lot sizing procedure for each operation.
1980s Manufacturing Requirements Planning (MRP II)
Utilizes software applications for coordinating manufacturing processes, from product planning, to product distribution.
2000s Enterprise Resource Planning (ERP)
Uses multi-module application software for improving the performance of the internal business processes.
Integrate business activities across functional departments
include application modules for supporting marketing, finance, accounting and human resources
Benefits of Enterprise Resource Planning (All In One Article)
Integrated system that meet all the requirement of organizational functions
Integrated data that have same meaning across multiple functions. Data used in human
resource department software (payroll software) can also be used in accounts department
software without any modification.
Uniform maintenance; change affects multiple system. Recording sales transaction
automatically changes sales and accounts receivable data.
Common interface across system. ERP developed in a generalized interface which can be
executed in any system and hardware interface. ERP used in XP can also be used in Linux. So
when company made a change in their system interface then they need not to change ERP
software ; which will save the ancillary cost
Consistent real time information customer and vendors. Multiple data is stored and retrieve
in a real time basis thus assist a great through reducing preparation time before making a
decision
Single application to meet a specific functional area. Purchasing software deals with all the
facet of purchasing raw material and procurements. Reduce overpopulated software in
system deigned to perform same functional area
Quick information response time through ensuring real time update
Increase interaction across the enterprise
Improve order management through increasing efficiency in handling with a great order
tackling performance
Decrease financial close cycle through Business intelligence and integrated database;
containing al related data of different functional departments.
Improve interaction with customer through reducing lead time; latency in between starting
and accomplishing certain business process is called lead time.
Improve on time delivery through increasing delivery performance
Through utilizing inventory level in an efficient manner it ensure lower inventory level ;
reduce warehouse cost