ERP Fundamentals in 2022: What Is It & How Does It Work?

The history of ERP systems commenced with material requirements planning (MRP) systems in the 1960s, that helped manufacturers manage raw materials procurement and delivery to the production facilities, so they could better plan production runs. The ‘80s saw the emergence of the first manufacturing resource planning (MRP II) systems that supported manufacturing processes beyond inventory and raw materials procurement. Sometime in 1990, Gartner used the term enterprise resource planning – where many businesses were utilizing these systems to increase the efficiency of their entire operations. The year 2000 saw the emergence of ERP II – internet-enabled systems that could pull data from other internal business applications as well as integrate with system of customers and vendors to drive process level collaboration.