A Brief History of ERP

The term ERP was coined in 1990 by Gartner, but its roots date to the 1960s. Back then, the concept applied to inventory management and control in the manufacturing sector. Software engineers created programs to monitor inventory, reconcile balances and report on status. By the 1970s, this had evolved into Material Requirements Planning (MRP) systems for scheduling production processes.

In the 1980s, MRP grew to encompass more manufacturing processes, prompting many to call it MRP-II or Manufacturing Resource Planning. By 1990, these systems had expanded beyond inventory control and other operational processes to other back-office functions like accounting and human resources, setting the stage for ERP as we've come to know it.

Today, ERP has expanded to encompass business intelligence (BI) while also handling "front-office" functions such as sales force automation (SFA), marketing automation and ecommerce. With these product advancements and the success stories coming out of these systems, companies in a broad range of industries, from wholesale distribution to ecommerce, use ERP solutions.

Moreover, even though the "e" in ERP stands for "enterprise," high-growth and mid-size companies are now rapidly adopting ERP systems. Software-as-a-Service (SaaS) solutions, also referred to as "cloud computing," have helped fuel this growth. Cloud-based solutions not only make ERP software more affordable, they also make these systems easier to implement and manage. Perhaps even more importantly, cloud ERP enables real-time reporting and BI, making them even valuable to executives and staff seeking visibility into the business.

Nevertheless, many companies, particularly the ones that are more data-centric are skeptical about the data security on cloud. To address their concerns, major ERP systems like Tuhund provide number of options ranging between purely cloud solution on one end and in-house solution hosted on intranet on the other. Tuhund comes with all the advantages of a cloud based ERP minus all disadvantages of a cloud based ERP.

history of ERP

Accounting and Finance

General Ledger

Payables

Cash Flow

Fixed Assets

Receivables

Budgeting

Consolidation

Ledger Set

Cost Centers

Approval Process

Employee expense claims

Commission Payable

Commission Receivable

Human Resource Management

Payroll

Training

Benefits

Employee accounts

Recruiting

Succession planning

Effective utilization

Employee assessment

Manufacturing

Engineering

Bill of materials

Work orders

Scheduling

Capacity

Workflow

Quality control

Cost control

Manufacturing process

Manufacturing projects

Manufacturing flow

Activity based costing

Product lifecycle

Supply Chain

Order to cash

Inventory

Order entry

Purchasing

Product configuration

Supply chain planning

Supplier scheduling

Inspection of goods

Claim processing

Commissions

Project Management

Costing

Billing

Time and expense

Performance units

Activity

Project knowledge database

Risk management

Project communication

CRM

Sales and marketing

Commissions and incentives

Customer Service

Customer contact

Data Services

Access Control

Business Intelligence

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