What is the Meaning of ERP System?
You may get overwhelmed by the answers to the question “What is the meaning of ERP System?”. There are many answers. However, be sure, it’s a powerful tool for business.
What is ERP?
ERP, which refers to the integration and automation of companies’ core business, stands for Enterprise Resource Planning. It can help companies make their success a lot easier and more effective. It also refers to the software or system designed greatly to manage and record the data of a company amazingly.
The History of ERP
ERP term was invented by Gartner1 in 1990. However, the roots were back to 1960s when it was only in the sector of manufacturing—the inventory management and control to be exact, that the concept was first applied. At that time, the software inventors made a certain program to reconcile balances, report on status, and monitor inventory. In the 1970s, the program evolved to the systems of Material Requirement Planning or MRP for short, for arranging the schedule for production processes. In the 1980s, the MRP became MRP-II—Manufacturing Resource Planning. In the 1990s, the programs expanded in operational processes which included the inventory control, to the functions for back offices’ tasks like human resources and accounting.
The ERP System
So, “What is the meaning of ERP System?” The ERP System itself is the one that automates and integrates the process of core business which includes keeping financial data, taking customers’ orders, keeping the record of inventory, and scheduling the operations. This kind of system gives lots of benefits to companies trying to manage their whole business performance as great as possible. It sure helps companies with efficiency, intelligence, analytics, and visibility to all of the companies’ business aspects. This is definitely the system to bring your companies to the era of a digital economy in confidence.
The Features of ERP Systems
The integration of ERP System is to help any company manage various business operations. It’s able to simplify all of the procedures with brief information. According to market trends, it usually can define and handle different functions. See the departments in a company that can simplify their responsibilities with the help of ERP systems:
- Finance
- Quality Control
- Human Resources
- Inventory
- Sales and Purchase
If you have retail business, ERP Systems can help simplify the management of finance, human resource, retail, and supply chain and distribution. To make the system more amazing is that it can be deeper to help with its single platform. Like to finance management, the help includes the ledger, account payable, and account receivable.
What do you think? Surely now you get the picture of the question: “What is the meaning of ERP System?” Are you going to use this kind of system to elevate your business? Make sure you know the most needed ERP Systems with certain features to help your business grow bigger and bigger. You also need to know the knowledge of the best ERP Company that can support you with long-term service. It is great if the article about ERP System can guide you well.