What does ERP Stand for?

ERP stands for Enterprise Resource Planning. ERP is the world’s huge software that builds to control the flow of business process regardless of their size and strength.
In any Enterprise, managers have to face challenges in day to day business activity such as project management, accounting, risk management and supply chains according to business requirement. Sometimes managers face difficulty in attaining accurate information or bad interfaces analyze, costs and products. To overcome such situation, Enterprise Resources Planning comes into the play. In the worlds Market, we get a complete ERP suite available and includes Enterprise Performance Management, where it helps and integrates into planning, budgeting, predicting and reporting in the financial results.
The Major components of Enterprise Resource Planning are:

• • Human Resources Management
• • Supply Chain Management
• • Financial System
• • Manufacturing Resources Planning
• • Customer Resources Planning

If the ERP software installed correctly, then this integration approaches cost-effective for a company and can easily share information and communicate with one other.

Evolution of ERP:

• • In 1913, Ford Whitman Harris developed the Economic order quality (EOQ) model, which is a paper-based manufacturing system. EOQ has become standard for a decade in the manufacturing system.
• • Latter in 1964, Toolmaker Black and Decker has changed the game in planning, scheduling and created a solution called Material Requirement Planning (MRP).
• • Many resources planning modules have developed for manufacturing components like bills of materials, purchasing, contract management and scheduling in the year 1983.
• • After computer technology evolved, a similar module like MRP II has developed to handle business or business requirement. Around 1990, business analysts had renamed MRP II to Enterprise Resources Planning software for business activities.

What does ERP software do?
By integrating ERP software, it saves time, cost and scheduling activities. ERP helps the management to take faster decision-making with the help of a reporting tool in the system. This software is good at tracking every transaction of the companies from starting to the end date. The leading function of this ERP software is to transfer data between different functional areas in the organisation such as manufacturing, human resources, marketing, sales, finance and logistics.

What is the relation between SAP and ERP software?
SAP stands for System Application and Product in data processing which sells ERP software solution to the business organisation, where ERP solutions help the organization to manage their business activities. These two SAP and ERP are interlinked to take the business process easily.
I hope this article helps the reader to understand the term ERP and its advantages in the business process. The similar module introduced by SAP called Project System that explains full detail of project management tools.
We have come to an end to this article on what does ERP stands for? To know more about SAP PS, check out the certified course SAP PS Online Training by ITEducationalExperts.