Evolution_Of_ERP_and_Role_in_Supply_Chain[1].pptx

1. Evolution Of ERP and Role in
Supply Chain Management

2. Content

3. INTRODUCTION
 Enterprise resource planning (ERP) refers to a type of software that organizations use to
manage day-to-day business activities such as accounting, procurement, project
management, risk management and compliance, and supply chain operations.
 A complete ERP suite also includes enterprise performance management, software that helps
plan, budget, predict, and report on an organization’s financial results.
 ERP systems tie together a multitude of business processes and enable the flow of data between
them.
 By collecting an organization’s shared transactional data from multiple sources, ERP systems
eliminate data duplication and provide data integrity with a single source of truth.

4. BREIF HISTORY OF ERP
 The history of ERP goes back more than 100 years. In 1913, engineer Ford Whitman Harris developed what
became known as the economic order quantity (EOQ) model, a paper-based manufacturing system for production
scheduling.
 MRP remained the manufacturing standard until manufacturing resource planning (called MRP II) was developed
in 1983.
 MRP II featured “modules” as a key software architectural component, and integrated core manufacturing
components including purchasing, bills of materials, scheduling, and contract management.
 As computer technology evolved through the 1970s and 1980s, concepts similar to MRP II were developed to
handle business activities beyond manufacturing, incorporating finance, customer relationship management, and
human resources data.
 By 1990, technology analysts had a name for this new category of business management software—enterprise
resource planning.

5. SUPPLY CHAIN MANAGEMENT
Supply Chain Management (SCM) is the coordination and management of
all activities involved in the production and delivery of goods and services,
from raw materials to finished products. SCM involves the planning and
management of all activities, including sourcing, procurement, production,
transportation, and distribution.

6. MRP 1.0: MATERIAL REQUIREMENT PLANNING
MRP 2.0: MANUFACTURING RESOURCE PLANNING
ERP 1.0 ENTERPRISE RESOURCE PLANNING
ERP2.0 ENTEPRISE RESOURCE PLANNING
ERP3.0 ENTEPRISE RESOURCE PLANNING

7. ERP 1.0
• ERP 1.0 refers to the initial phase of Enterprise Resource Planning (ERP)
software. It was developed in the 1990s and was primarily focused on
integrating different departments and functions of an organization, such as
finance, human resources, inventory management, and production planning.
ERP 2.0
• ERP 2.0 refers to a more user-centric approach to ERP design, where the
system is designed to be more intuitive and user-friendly. This can be achieved
through the use of modern user interfaces, personalized dashboards, and
mobile accessibility.
ERP 3.0
• ERP 3.0 is providing tools such as self-reporting capabilities, user defined
workbenches, augmented analytics that suggest solutions, predictive science,
and voice-responsive personal assistant that will help people to become the best
that they can be through empowering workforces, expediting tasks, and
supporting fast decision making.

8. ROLE OF ERP IN SUPPLY CHAIN
MANAGEMENT
 Streamline Operation
 Efficient Managing Demand & Procurement
 Reliable Processing & Documentation
 Improve Inventory Management
 Improve Customer Service
 Cloud Capabilities

9. Benefits of ERP in Supply Chain Management
 IMPROVED EFFECIENCY
 REDUCED COST
 BETTER DECISION MAKING
 PROPER INVENTORY MANAGEMENT
 TIME EFFICIENT