What is ERP Software and What is It?

ERP software as one of the most popular accounting software often used by middle to upper class companies.

ERP Software
ERP Software


What is ERP Software?
You need to know that ERP (Enterprise Resource Planning) software is a concept to plan and manage the company's resources covering fund, human, machine, spare parts, time, material and capacities that have wide influence from top management to operational in a company can be utilized optimally to generate added value for all interested parties.

The concept aims to integrate the company's activities to be more responsive to the various needs of the company such as: elimination of processes that do not need (process elimination), simplification of complex processes or rambling (process simplification), the unification of redundant processes (process integration), and automation of manual processes (process automation).

History of ERP Software Creation and Development
In the early 1960s, there was an information system called Material Requirement Planning (MRP) which was the initial stage of ERP software development with the concept of material needs planning with functions in the area of ​​Inventory Management and Company Production.

The concept of MRP began to develop in the 1970s to Close-Loop MRP until it was transformed into MRP II (Manufactur Resource Planning) in 1980 and created ERP which was an extension of some business processes in the 1990s.

The advantages of using this ERP system include:

  1. ERP offers an integrated system within the company, so that process and decision making can be done more effectively and efficiently.
  2. ERP also allows global integration. Barriers that were in the form of currency differences, language differences, and cultural differences, can be bridged automatically, so that data can be integrated.
  3. ERP not only combines data and resources, but also eliminates the need for updating and rectification of many separate computer systems.
  4. ERP allows management to manage operations, not just monitoring them. With ERP, management is not only able to answer the question 'How are we?' But more able to answer the question 'What should we do to be better?'
  5. ERP helps smooth the implementation of supply chain management with the ability to integrate it.
Along with the development of technology, now ERP can already be used in various companies, but unfortunately awareness of the importance of ERP system is still relatively low. Yet to be able to compete in the market the system needs to be applied.

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Implementation of ERP software such as Acumatica Cloud ERP in a company will gain profit in the form of ease of production planning, ordering process, inventory management, delivery and finance so as to support the achievement of company's success and you can more focus into business strategy process.