ERP

Origin of ERP

 In 1990 Gartner Group first employed the acronym ERP as an extension of material requirements planning (MRP), later manufacturing resource planning and computer-integrated manufacturing. Without supplanting these terms, ERP came to represent a larger whole, reflecting the evolution of application integration beyond manufacturing.Not all ERP packages were developed from a manufacturing core. Vendors variously began with accounting, maintenance and human resources. By the mid–1990s ERP systems addressed all core functions of an enterprise. Beyond corporations, governments and non–profit organizations also began to employ ERP systems.
    
ERP - Enterprise Resource Planning

ERP refers to both the software and the business strategies which will allow you to implement the business systems.

Integration of ERP


ERP Allows you to integrate all the Business Processes in one single Platform. Just imagine any organization you know. It has got many divisions; Sales & Distribution, Purchasing, Material Management, Finance accounting, Warehousing Management, Human Resource, Planning  & Co-ordination etc. Now, everyone in here is using a different set of applications and provide you with different services. Where does the role of enterprise fit in lets forget about the Resource and Planning for time being. ERP DIAGRAM

 Benefits of ERP System

• Strategic planning.
• Monitoring and Control.
• Improved Strategic Planning
• Facilitate day-to-day management
• Better visibility of business processes.
• Highly help reduce the operation costs.
• Improved Productivity and operational efficiency.
• Streamline quality control in the business processes.
• Proper Analysis and Reporting for long term planning.
• Improved financial management and corporate governance.
• Real time information throughout the organization at all levels.
• Common best practices and proven and tested methodologies can be customized in ERP Systems.  

 ROI Factors to consider ERP Implementation

• Reduced manual intervention.
• Remove non valued added activities.
• Lower savings through reduced reworks.
• Improved decision making with the use of real-time data.
• Lower Inventory costs thorugh better efficiency and visibility.
• Enable employees to use more analysis rather than transactional routine work.   

Implementing Enterprise Resource Planning utilizes various functional areas to help improve organizations performance for :

• Resource Utilization and Planning
• Resource Operation Control.
• Improve maximum product utilization.
• Centralized planning and co-ordination
• Good Management Control over the organization