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What is ERP? |
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What is ERP?
ERP is the acronym for
Enterprise Resource Planning systems. It has been evolving for
the past few decades with IT development.
The focus
of manufacturing systems in North America in the 1960s was on
inventory control. Most of the software packages then were
designed to handle inventory based on traditional inventory
concepts.
In the 1970s the focus shifted to Material
Requirement Planning (MRP) systems that translated the Master
Schedule built for the end items into time-phased net
requirements for the sub-assemblies, components and raw
materials planning and procurement.
In the 1980s the
concept of MRP-II evolved, which was an extension of MRP, to
handle shop floor and distribution management
activities.
In the early 1990s, the term Enterprise
Resource Planning came into use. ERP, as a computerized
software package, attempts to integrate all the information
flowing across a company, including production, finances,
accounting, human resources, supply chain and customer
information, and serve all those different departments'
particular needs.
Put simply, ERP is a company-wide
management system aiming at lowering inventory costs and
increasing productivity and customer service.
It is
predicted by U.S.-based Gartner Group that the output value of
the global ERP market totals US$20 billion, divided evenly
between revenue in services and licensing.
So far, the
most significant ERP players in the current world market are
Baan, JD Edwards, Oracle, PeopleSoft, and SAP. |
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