Essay about An Enterprise Resource Planning System

3587 Words Jun 15th, 2016 null Page
Through accurate, real-time information about daily operations, companies can make faster, smarter decisions which allow them to reduce operational costs by 23% and administration costs by 22%. An Enterprise Resource Planning system, also referred to as ERP, is a management tool that integrates all departments and functions across a company onto a single system allowing companies to make those faster and smarter decisions. Specifically, it gives individuals a global view of data, improves financial compliance, automates business operations, and enhances customer service. One of the central features of all ERP systems is they share a database that supports multiple functions used by different business units. ERP systems improve operations such as, manufacturing, shipping, purchasing, and accounting. Attached is a visual depicition showing all departments being connected through the central ERP system :
They also handle department transactions like inventory management, invoicing, sales, & cash collections. Many companies small and large are using ERP systems in a broad range of ways across many different industries. The term ERP was coined in 1990 by Gartner, but its roots date back to 1960. Then the concept was applied to inventory management and control. In the 1970s systems evolved into Material Requirements Planning (MRP) systems which aide in production scheduling. By 1990 the systems expanded from the front end and manufacturing to the back-end functions such as…

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