A Brief History of Enterprise Resource Planning (ERP) Software

ERP has evolved after more than 50 years of development. Know how ERP has developed since it was first discovered in 1960.

As a software created for ease of industrial management, ERP or so-called Enterprise Resource Planning certainly has a long history.

The Main Functions of Enterprise Resource Planning

Enterprise Resource Planning has the main function to organize the course of your business, by integrating all aspects of the system from within the business. Starting from the aspect of production, distribution, to promotion.

Even for manufacturing-scale industries, ERP is widely known as software to carry out automation processes. What is clear, ERP has been widely used and helps various industries both small and large scale.

History of ERP Development in the World

A complex system is unlikely to come suddenly. The first known ERP has appeared since the 1960s, although it is still not referred to as ERP but the concept base is almost the same.

Year 1960

In this year ERP software does not exist, but the concept has emerged and began to be used to deal with simple industry problems. At that time, the software was only used to monitor inventory, company balance information, to report job status.

Although simple, the software already uses a computer centralization system. This means that data is stored on one central computer (Big Data) and then can be accessed from another computer, even if only on a local network.

Year 1970

A decade later, the new system was further developed and referred to as MRP or Manufacturing Resource Planning.  MRP systems are known to have evolved to be more complex than what they were in the 1960s, thus helping with more difficult manufacturing problems.

Year 1980

The software was further developed and upgraded to MRP-II. In this version, software has begun to be able to handle the scheduling of manufacturing production processes (which are known to be the most vital part of the industry).

Year 1990

The Gartner Group called this system an ERP for the first time in 1990. ERP systems that used to only handle warehouses, can now be integrated with problems in the office, such as sales information and financial predictions.

This makes the information in ERP more complete, and of course more difficult to process. Some of the features that we know in ERP now, have existed since ERP in the era of 1990.

2000s

With the entry of the influence of the internet in the 2000s, the use of ERP became more widespread and exceeded the limits of distance and space. Now ERP systems can be used by any division seamlessly without the need to wait for each other. People in the warehouse, can access production information through erp applications without the need to return to the factory first.

Have you used ERP in your industry?

By knowing how ERP works comprehensively, you can certainly increase productivity and work efficiency in your industry. ERP is widely used to solve counterproductive problems, such as planning or analyzing data faster.

Have you used ERP in your business? You need to know that ERP is not only limited to the manufacturing industry, if you are an industry engaged in technology (IT), ERP can also help you in automating business to be more efficient.

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