Enterprise resource planning (ERP) software is specialized software for businesses. It is designed to manage and integrate all the various aspects of the business—supply chain, operation, financial affairs, reporting, human resources, and manufacturing. For manufacturing companies, ERP software can have a tremendous effect on your day to day operations and how smoothly your business runs. Manufacturing ERP software is often a game changer for those in the manufacturing business.
Let’s explore how ERP software has grown and developed along with the manufacturing industry itself.
First, the Benefits of ERP Software
Manufacturing firms need to keep their eye on the ultimate goal of creating top of the line products to ensure customer satisfaction, while at the same time preserving their bottom line by cutting costs where it is possible to do so without sacrificing quality. An ERP system checks all the boxes by offering up functions manufacturers need.
- Inventory Tracking – live updates on how much of any given item is in stock
- Transparency – broken down information silos, so different departments are aware of what the others are doing
- Organized Information – ERP software constantly scans for duplicate entries and interlinks all databases, so everything is streamlined
- ROI – ERP software tracks where every dollar is going, allowing you to trim unnecessary expenses.
The History of ERP Software
ERP software got its beginning back in the 1980s as Manufacturing Requirements Planning (MRP). The MRP system was a clear forerunner of the modern ERP. It was designed to coordinate multiple systems across a business—manufacturing, production, purchase, inventory, and distribution. The benefits of the system immediately became clear, of course—operations were streamlined, made easier and more straightforward—but equally clear was the fact that there was untapped potential here.
The early developments into full ERP software enhanced the old MRP by adding new facets to its capabilities. Automation was added for HR, finance, marketing, SCM, inventory, project management, and various other aspects of business.
The Internet Era
The advent of the internet enabled a bold new frontier in ERP software development. Subscription basis solutions were added in the 1990’s, and in the 2000’s, web friendly tools and apps became commonplace additions to manufacturing ERP software. Software was now being offered by third party providers specifically as a solution to the problems faced by client companies. In the past couple of decades, ERP has become a powerful ecommerce tool as well.
ERP systems have a long history of evolving alongside the growth of technology and the needs of business. Whatever comes next is sure to be a welcome addition to the industry!