A Brief History of Enterprise Resource Planning (ERP) Software

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

As a software created to facilitate industrial management, ERP or what is called Enterprise Resource Planning certainly has quite a long history.

Main Functions of Enterprise Resource Planning

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

Even for manufacturing scale industries, ERP is widely known as software for carrying out automation processes. What is clear is that ERP has been widely used and has helped various industries, both small and large scale.

History of ERP Development in the World

Complex systems cannot come suddenly. The first ERP known to have appeared since the 1960s, although it is still not called ERP, the basic concept is almost the same.

1960

This year, ERP software does not yet exist, but the concept has emerged and is starting to be used to handle simple industrial problems. At that time, the software was only used to monitor inventory, information on company balances, and report work status.

Even though it is simple, this software already uses a centralized computer system. Which means data is stored on one central computer (Big Data) and can then be accessed from other computers, even if only on a local network.

1970

A decade later, the new system was further developed and was called MRP or Manufacturing Resource Planning. MRP systems are known to have developed to be more complex than they were in 1960, so they can help with more difficult manufacturing problems.

1980

The software was developed further and underwent an upgrade to MRP-II. In this version, the software has started to be able to handle manufacturing production process scheduling (which is known to be the most vital part in industry).

1990

Gartner Group called this system ERP for the first time in 1990. The ERP system, which previously only handled warehouses, can now be integrated with problems in the office, such as sales information and financial predictions.

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

2000s

With the influence of the internet in the 2000s, the use of ERP became increasingly widespread and exceeded the limits of distance and space. Now the ERP system can be used by any division seamlessly without having to wait for each other. People in the warehouse can access production information via the ERP application without needing to return to the factory first.

Have you utilized 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 counter-productive problems, such as planning or analyzing data more quickly.

Now, have you utilized ERP in your business? You need to know that ERP is not only limited to the manufacturing industry, even if you are in an industry that operates in the technology (IT) sector, ERP can also help you automate your business to be more efficient.

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