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