History and Evolution of ERP

1960s
Inventory Management & Control
Inventory Management and control is the combination of information
technology and business processes of maintaining the appropriate level of
stock in a warehouse. The activities of inventory management include
identifying inventory requirements, setting targets, providing replenishment
techniques and options, monitoring item usages, reconciling the inventory
balances, and reporting inventory status.


1970s
Material Requirement Planning (MRP-1)
Materials Requirement Planning (MRP-1) utilizes software applications
for scheduling production processes. MRP generates schedules for the
operations and raw material purchases based on the production requirements of
finished goods, the structure of the production system, the current
inventories levels and the lot sizing procedure for each operation.


1980s
Manufacturing Requirements Planning (MRP-2)
Manufacturing Requirements Planning or MRP utilizes software
applications for coordinating manufacturing processes, from product planning,
parts purchasing, inventory control to product distribution.


1990s
Enterprise Resource Planning (ERP)
Enterprise Resource Planning or ERP uses multi-module application
software for improving the performance of the internal business processes.
ERP systems often integrates business activities across functional
departments, from product planning, parts purchasing, inventory control,
product distribution, fulfillment, to order tracking. ERP software systems
may include application modules for supporting marketing, finance, accounting
and human resources

2000s
The difference between ERP and ERP -2
The difference between ERP and ERP -2 "In 1990 when we coined the term, ERP was enterprise centric with very little awareness of anything going on around it," says Zrimsek. "Today, we’re moving towards collaborative commerce, or c-commerce. To do that you have to share information outside the enterprise."
ERP II systems are not just the backbone of the enterprise. They are also the information link for an enterprise in the supply chain. That’s because the business of tomorrow is going to play multiple roles in multiple supply chains, from traditional sources to electronic marketplaces.
The challenge for ERP -2 is two-fold. First, it’s to aggregate and manage the data surrounding all the transactions of an enterprise as accurately as possible in real time. Then, it’s to open up the system to make that information available to trading partners.