What is ERP?
ERP is an acronym for enterprise resource planning. ERP software is consisting of powerful and strategic business process management tools that can be used to manage information within an organisation.
Oracle, the American multinational computer technology corporation, defines ERP as “a type of software that organizations use to manage day-to-day business activities, such as accounting, procurement, project management, risk management, and compliance, and supply chain operations.”
A Brief History of ERP
Before that, the particular term MRP is in usage which stands for both Material Requirements Planning and Manufacturing Resource Planning. The term ERP is evolved from it. In the initial stage of its existence, the ERP is used in back-office work such as inventory management, human resources, IT, purchasing, fulfilment, accounting, manufacturing, planning and scheduling, and more.
Later, it was expanded to other areas such as customer relationship management, supplier relationship management, and supply chain management, human capital management, business intelligence, and ecommerce.
Types of ERP systems
There are three different types of ERP software and they are on-premise software, cloud-based software, and hybrid software.
Benefits of ERP Systems
Here are some of the important reasons and benefits of ERP systems.
- Can simplify the process in finance and accounting
- It helps the organisation with real-time visibility into its operations.
- It provides an organisation with instant access to its global supply chains.
- Helps in automating and streamlining boring tasks and redundant processes.
- Increase the productivity of the team.
- Easy collaborations within the teams and with third-party vendors.
- Offering powerful reporting and forecasting tools to make accurate decisions about the business’s future.
- It can be accessed from anywhere.