ERP is an acronym for Enterprise Resource Management, the consolidated method of storing and managing company data in an automated software suite. ERP software provides tools that automate business functions such as development, sales quotation, accounting, and more. ERP encourages the activities of the business in every department. ERP technologies expand how companies manage resources, whether they are raw materials for production or staffing hours for human resources.
History
Even if it did not have that name – “ERP,” businesses have always tried to use enterprise resource management. Companies have always struggled with sacrificing resources elsewhere to balance all their distinct practices.
This meant that companies had to employ extra staff to manage each department for a long time. With no way of checking in, international firms had to rely on outsourced abroad.
The first traces of ERP in manufacturing go back to the economic order quantity (EOQ) model, a paper-based scheduling system. Material resource planning instruments that gradually became tools for manufacturing resource planning replaced EOQ in the late 1960s.
Because of the frequent incorporation of computer software with everyday business operations, modern ERP activities started in the 1990s.
