Enterprise Resource Planning 

ERP is an acronym that stands for “Enterprise Resource Management”, the consolidated process of gathering and organizing business data through an integrated software suite. ERP software contains applications which automates business functions like production, sales quoting, accounting, and more.

In layman’s terms, ERP facilitates your company operations across every department. ERP solutions improve how you handle business resources, whether it’s raw materials for manufacturing or staffing hours for human resources.

Businesses have always tried to use enterprise resource management, even if it didn’t have that name. Companies have always struggled to balance all their different practices with sacrificing resources elsewhere. For a long time this meant companies had to hire additional staff to manage each department. International companies had to rely on outsourced labor abroad with no way of checking in.

The first traces of ERP were found in manufacturing, with the economic order quantity (EOQ) model, a paper-based scheduling system. This was replaced by material resource planning (MRP) tools developed in the late 1960s which eventually became manufacturing resource planning (MRP II) tools. Modern ERP practices began in the 1990s due to the rise of computer software being integrated with daily business operations. Coined by the Gartner Group, the term originally focused solely on the new digital tools allowing manufacturers to manage their supply chain relations, control inventory, automate accounting, and much more.

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