Enterprise resource planning ERP
Contents |
[edit] Introduction
Enterprise resource planning (ERP) software is used to integrate different aspects of business operations into a single technology offering. This means the same technology and data is used and accessed across a range of different parts of an organisation, making it possible to tie together information and operations in an automated, end to end approach.
Early ERP was intended to assist with the automation of back office functions. A robust ERP can handle essential business activities such as finance, human resources, inventory management, procurement, project management, risk management and compliance and supply chain operations. A comprehensive offering may help organisations plan, budget, predict and report on enterprise performance.
[edit] History
ERP first appeared in the manufacturing industry as an automated advancement of the Economic Order Quantity EOQ. Developed in 1913, EOQ was a paper-based inventory management technique that described the minimum amount of inventory an organisation must have to optimise the size of orders and their associated costs. It was used in operations, logistics and supply chain management.
Next came material resource planning (MRP) in the 1960s, which eventually paved the way initially for advanced MRP II tools and then ERP. The term ERP was first used by The Gartner Group in the 1990s to describe this evolution of MRP and MRP II. In 2000, Gartner introduced the term ERP II, but this has not been widely adopted.
[edit] Specialisation
Since the 1990s, ERP has moved from manufacturing to other business sectors which have ERP solutions designed to address their specific needs. These include apparel, automotive, construction, higher education and so on.
No longer solely a local software solution, ERP is now available as a cloud-based platform and as hybrid ERP, which combines desk and cloud-based offerings. It is also available as open source software which can be tailored by the user.
[edit] Using ERP
Adopting an ERP system can be expensive and complex, since they are designed to integrate all supply chain processes - both internal and external. This complexity can create a challenge for small- to medium-sized enterprises (SMEs) that may struggle to justify the investment.
However, the integration may produce positive results for organisations of all sizes in several areas, including innovation, efficiency, standardisation and IT cost savings.
In a global economy, some multinational clients require that their partners not only to use ERP, but use the same ERP as the client.
[edit] Related articles on Designing Buildings
- Asset management.
- BIM - it's about the Planet - Part 1.
- Corporate objectives for procurement.
- Economic Order Quantity EOQ.
- Enterprise asset management.
- EPROMIS Construction ERP.
- How to use the Enterprise Risk Management guide.
- OpenBuilt supply chain technology platform.
- Products as a Service PaaS.
- Software as a Service SaaS.
Featured articles and news
The continued ISG fall out, where to go?
Support for ISG contractors, companies and employees.
New HES national centre for traditional building retrofit
Announced as HES publishes survey results which reveal strong support for retrofit.
Retrofit of Buildings, a CIOB Technical Publication
Expected to become one of the largest activities in the global construction industry.
The ECA industry focus video channel
Keeping update with the industry session by session.
Over 25 recorded informations sessions freely available.
AT Awards 2024 ceremony East London October 25th.
Revisiting the AT community at the 2023 awards evening.
The Community Housing Fund and built affordable homes
CLTN reviews the impact of the Fund and calls for extension.
The grading system of the Regulator for Social Housing
A background, an explanation and ten recent enforcements.
Construction, repair and maintenance. Book review.
Putting new life into a city with a 1900 year history.
BSRIA Briefing 2024: Sustainable Futures speakers
Redefining Retrofit for Net Zero Living 22 Nov.
Wall of support for post-Grenfell regulation of electricians
Call for a shake-up of the construction industry highlighted on radio.
Digital sustainability through future AEC tools
Bringing together industry and academia to meet challenges.
Skills gap for net zero highlighted to Minister for Industry
ECA convenes roundtable discussion at Portcullis House.
Evidencing Net Zero with the new UK buildings standard
Pilot version with detailed excel proforma out now!
Scottish Building Safety Levy, in consultation
From direct remediation and the RPDT, to the costs and alternatives.
Waves of warmer homes grants for the rental sector
Boosting energy efficiency standards for all rented homes.
A refocus of the National Planning Policy Framework
Key terms described in brief, as the consultation closes the evening of the 24th.
Fortified farmhouses of the unruly 16th-and 17th-century borders.