In 1990, Gartner created the term ERP to describe the development of Material Resource Planning (MRP) and Manufacturing Resource Planning (MRP II) because they extend beyond manufacturing in other parts of the enterprise, usually finance and HR .
The ERP system was rapidly evolving in response to the introduction of Y2K and Euro during the 1990s.
What is the ERP system used for?
ERP systems improve enterprise efficiency and effectiveness:
Integrating financial information. Without an integrated system, individual departments, such as finance, sales and so on, need to rely on different systems, each of which will have different revenue and expense numbers. Employees at all levels waste time in reconciliation rather than discussing how to improve the enterprise.
The integration order coordinates an ERP order, build, inventory, accounting and distribution. It is very simple and less error with the single system compared to a series of different systems for each stage in the process.
Providing information from customer information. Most ERPs include customer relationship management CRM tools for tracking all customer interactions. Coupling these interactions with information about order, delivery, returns, service requests, etc. provides information about the customer’s behavior and needs. [See also: CRM vs. ERP: What is the difference and what do you want? ]
Standardization and fast construction. With the hunger for building companies, especially mergers and acquisitions, they often find that many business units use different methods and computer systems to create different widgets. This standardization saves time, increases productivity, and reduces head count.
Hourly information standardization is the lack of a simple method for many enterprises, especially in many business units, communicating with employees about the benefits or tracking the hours and expenses of employees. An ERP system with a self-service portal enables employees to maintain their personal information, while integrating advanced degrees, certificates and tasks such as timely reporting, spending tracking, vacation requests, scheduling, training etc. Experience in human resources stores, individuals with specific capabilities can easily be matched with potential tasks.
Purchase of standardization. In the absence of an integrated procurement system, analysis and tracking of the purchase across the enterprise is challenging. Large enterprises often find that different business units buy the same product, but they do not get the benefit of relaxation in the volume. ERP Purchase Equipment Hand Purchase Team For Vendor Negotiations By Identifying Widely Used Vendors, Products And Services
Facility of government reporting. ERP systems can increase the capacity of the organization to make necessary reporting for government regulations in finance, human resources and supply chain.
What are the benefits of ERP system?
ERP improves professional performance in many ways. Specially:
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Enabling internal efficiency To properly execute the ERP system properly, enterprises to reduce the time it takes to complete almost every business process.
Better decision maker ERP promotes cooperation through shared data shared around common data definitions. Sharing data destroys the timing of data about the quality of data and allows the departments to analyze data, to conclude and to spend time in making better decisions. Balances central guidance with some amount of local autonomy to make the most effective decision. Mid-command and control are rarely responsible for local needs, while full-field autonomy provides enterprise-wide coordination. Shared data and general business processes allow decisions in the headquarters parameters, which are done by the closest persons to the situation.
Agility increased. The result of standardization and simplification occurs in less harsh structures. It creates a more intelligent enterprise, which can quickly adapt, increasing the chances of cooperation.
Increasing security While a centralized data base with enterprise data is a big goal, it is easy to secure hundreds of servers in comparison to data scattered around the wardrobe or desk. This is particularly difficult if the security team does not have information about the server or includes corporate data.