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
Industry survey highlights persistent skills gap
Building engineering business survey by ECA in partnership with BESA, SELECT and SNIPEF.
IHBC Conservation Professional Practice Principles
Spotlighted in HEF Historic Environment Overview.
CIAT collaborates with CIOB, CIfA, Icon to launch The Arc
Helping clients find specialist historic environment professionals.
Government building safety remediation data releases
Show some progress, but a 50% gap not yet started.
Testing For A Safer Future; an initial industry response
A response to the Independent Review of the Construction Product Testing Regime.
Requirements for UK buildings in certain circumstances.
CLC guidance for dutyholders and accountable persons.
Types of contractor in the construction industry
A long list, but are any missing ?
The Housing (Cladding Remediation) (Scotland) Bill 2023
Unanimously approved to legislation on May 14, 2024.
Asset information requirements AIR
In detail, with links to further resources.
Where it's AT Building Safety podcasts from CIAT
Unravelling the Golden Thread and CIAT’s Principal Designer Register for non-HRBs and HRBs.
What happened to Hadrian's Wall?
Its former stones can be found in buildings near its route.
Strategic ventilation in modern building design
Download your free guide.
Four new types of prior approval for solar developments
Online Planning Portal application types from 5 September.