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W4-A - Essay Example

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ERP systems use an integrated database in which data is stored for various processes that exist in the organization. The writers at Tech-FAQ.com…
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Download file to see previous pages departments or units such as HR department, Finance department, Supply chain management etc to coordinate activities by sharing information through this platform. ERP systems help in faster completion of daily routine tasks and with more accuracy. It reduces the overhead costs and enables better strategic planning since the needs can be assessed in a better manner.
The team at ERP.com (2009) stated in one of their articles that the term ERP has originated from MRP (Material Requirement Planning) that later became Manufacturing Resource Planning and it also came from CIM (Computer Integrated Manufacturing). This term was originally used to refer to the extent the organization had planned to use their organization wide resources. Earlier, ERP systems were mainly used in large organization, industrial types of companies.
In the late 70’s, the main idea behind MRP originated; it was meant for the management of the raw materials needed to fulfill the order from large companies and enterprises. After some time, the companies moved to a different approach “just in time” inventory planning. This step proved to cut warehousing and inventory costs because of better production planning. In these times, sales forecast started gaining a prominent name in business and hence began generating at weekly basis instead of monthly. This need evolved into a desire for a new dynamic enterprise system that could be used to manage company wide resources and data. A decade later, the need for a system that would enable the managers to streamline the processes and existing data throughout the organization evolved into Enterprise Resource Planning. ERP are now used in almost every organization, whether large or small.
ERP are used to address a diverse range of areas in an organization; manufacturing, supply chain management, finances, project management (PM), customer relationship management (CRM). There are many service providers who offer reliable and efficient ERP systems, some ...Download file to see next pagesRead More
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