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In this article, we tell you what ERP is, how this type of software works and its importance in efficient business management. article banner Share: Do you need innovation and digital transformation for your business? Find the best experts here at SIS Innov & Tech! Talk to Our Team The word ERP is the abbreviation for Enterprise Resource Planning which, translated into Portuguese, is “Company Resource Planning”. Thus, ERP is business management software that aims to automate manual processes, store data and unify the visualization of results.
Based on the information obtained, it is possible to make diagnoses and define objectives to reduce costs and increase the team's productivity. ERP helps managers improve internal processes and integrate activities in sectors such as sales, finance, inventory ws data and human resources. With this centralization, the data flow becomes more accessible and fluid, and eliminates duplication of information. The result of this is important insights that can contribute greatly to the company as a whole. History of ERP The ERP system began to be developed more than 100 years ago. Ford engineer Whitman Harris created the Economic Order Quantity (EOQ) model to schedule production. This tool was adopted for years, until Black & Decker started using another solution to plan material needs.
This new method was called Material Requirements Planning (MRP). In a practical way, some EOQ concepts were used and integrated into a computer. This tool was also used for many years, until it was replaced by another in 1983: Manufacturing Resource Planning (MRP II). This latest version has already enabled data integration and information sharing between departments, with the aim of reducing costs and improving production, avoiding, for example, waste. As technology evolved in the 1970s and 1980s, MRP II also evolved. Its concepts were adopted by different segments of companies and in 1990 it began to be called ERP. As observed in the ERP trajectory, the system tends to be in constant evolution, following the development of technology.
From research, it is possible to identify frequently adopted updates. You might like: What is Big Data? image of the author By: SIS Team October 5 , 2023 read more article cover How does ERP work in companies? After knowing what ERP is and what its history is, it is important to understand how it works in companies. Manage accounts payable and receivable Monitor sales Track purchase orders People management with information about team productivity Management of information from different sectors. In practice, ERP identifies that a raw material has been sent to production. Automatically, the item is removed from stock and the purchasing department information is updated. Everything in a simplified and automated way. Another practical example of ERP services: the human resources department enters employee data into the system, while the finance department enters payment data.
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發表於 2023-10-5 13:29:45
