Enterprise resource planning (ERP)

Enterprise resource planning (ERP):

                 Enterprise resource planning (ERP) is a category of business-management software typically a suite of integrated applications—that an organization can use to collect, store, manage and interpret data from many business activities, including:

1. product planning, cost
2. manufacturing or service delivery
3. marketing and sales
4. inventory management
5. shipping and payment

               ERP provides an integrated view of core business processes, often in real-time, using common databases maintained by a database management system. ERP systems track business resources—cash, raw materials, production capacity and the status of business commitments: orders, purchase orders, and payroll. The applications that make up the system share data across various departments (manufacturing, purchasing, sales, accounting, etc.) that provide the data. ERP facilitates information flow between all business functions, and manages connections to outside stakeholders.

Evolution of ERP

               ERP (Enterprise Resource Planning) is the evolution of Manufacturing Requirements Planning (MRP) II. From business perspective, ERP has expanded from coordination of manufacturing processes to the integration of enterprise-wide backend processes. From technological aspect, ERP has evolved from legacy implementation to more flexible tiered client-server architecture. The following table summarizes the evolution of ERP from 1960s to 1990s.

Timeline	System	Description
1960s	Inventory Management & Control	Inventory Management and control Is the combination of Information technology and business processes of Maintaining the appropriate level of stock in a warehouse. The activities of inventory management include identifying Inventory requirements ,setting targets, providing Replenishment techniques and options ,monitoring item usages, reconciling the inventory balances, and  reporting inventory status.
1970s	Material Requirement Planning (MRP)	Materials Requirement Planning(MRP) utilizes software Applications for scheduling production processes.MRP Generates schedules for the operations and raw material purchases based on the production requirements of finished goods, the structure of the production system, the current Inventories levels and the lot sizing procedure for each operation.
1980s	Manufacturing resource planning (MRP II)	Manufacturing Requirements Planning or MRP utilizes Software applications for coordinating manufacturing processes, from product planning, parts purchasing, inventory control to product distribution.
1990s	Enterprise Resource Planning (ERP)	Enterprise Resource Planning or ERP uses multi-module application software for improving the performance of the Internal business processes. ERP system soften integrate Business activities across functional departments, from Product planning, parts purchasing, inventory control, Product distribution, fulfillment, to order tracking.ERP Software systems may include application modules for Supporting marketing, finance, accounting and human resources.