ERP eazy System Articles
How did the History of ERP System come about?
History of ERP
The term “ERP” was coined by Gartner Group in the 1990s, although enterprise resource planning systems have been used in manufacturing for over a century. As industry needs have evolved, ERP systems have continually developed and adapted.
ERP originated in the 1990s, evolving from manufacturing management systems like MRP and MRP II. MRP, introduced in the 1960s, helped manage materials for production based on a master production schedule, improving efficiency and reducing inventory. However, it lacked the ability to adjust to real-time conditions. As business needs grew, MRP evolved into ERP, which now covers a wide range of functions beyond manufacturing. ERP systems continue to advance, leading to versions like Extended ERP and Next Generation ERP.
History of ERP
2003
Engineer Ford Whitman Harris developed the Economic Order Quantity (EOQ) model as a paper-based production scheduling system.
1964
Black and Decker introduced the first MRP solution, integrating EOQ with mainframe computers.
1970-1980
Computer technology evolved to manage business functions beyond manufacturing, including finance, HR, and CRM.
1983
MRP II integrates manufacturing operations into a common, interoperable information system with core modules.
1990-2000
Gartner Group coined “ERPs” to distinguish them from MRP systems, as ERPs include business intelligence and functions like SFA, marketing automation, and e-commerce.
2000-2005
As ERP software vendors create “Internet Enabled” products, cloud-based ERP solutions emerge, providing an alternative to traditional on-premises ERP.
Computer technology has evolved to manage business functions beyond manufacturing, including finance, HR, information, and CRM.