Enterprise Resource Planning
ERP software stands for “Enterprise Resource Planning” It can define as an integrated suite of business applications designed to automate the back-office operations of your organization–including production, sales quoting, accounting, and more.
In simple terms, ERP simplifies your company operations across every department. ERP solutions enhance how you handle business resources, whether it’s raw materials for manufacturing or staffing hours for human resources.
There are many more ERP definitions, which vary on whether they plan for developers, vendors, or technology media. ERP means to serve all departments of a company with better business processes.
The History of ERP Practices
Many Businesses have always adapted Enterprise Resource Planning, even though it didn’t have that name. Companies have always coped to balance all their different practices with ceding resources elsewhere. For a long period, this meant companies had to recruit additional staff to manage each department. International companies had to depend on outsourced labor abroad with no way of checking in.
Earlier ERP was found in manufacturing, with the name economic order quantity (EOQ) model, a paper-based scheduling system. This was succeeded by material resource planning (MRP) tools established in the late 1960s. Ultimately became manufacturing resource planning (MRP II) tools. Modern ERP practices started in the 1990s, due to the advancement of computer software to be incorporated with daily business operations. Coined by the Gartner Group, the term earliest focused exclusively on the new digital tools and allowed manufacturers to manage their supply chain relations, control inventory, automate accounting, and much more.
At Present, ERP found across different industries, not just manufacturing. ERP software is now accessible from Cloud-hosted platforms.
Types of ERP by Industry
There are different types of ERP designed for distinct industries to address their specific requirements: