ERP II: The Evolution of ERP

As the one saying goes, The biggest room in the world is the room for improvement. This applies to almost everything including the improvement of a system that worked well for us. Enterprise Resource Planning came about as an extension material requirements planning commonly used in the manufacturing setting. The manufacturing setting, mainly its logistics function came into mind when ERP was mentioned.

The ERP commonly used two modules which either covered an intensive or extensive scale. One focused on the macro elements. The other focused on the micro elements. Both methods failed to relieve the problems in the enterprise operations. Limitations were seen in both coverage. In the micro coverage, it was found out that there was not enough focus on the macro coverage and vice versa.

This paved way for the development of the ERP which used both focus. It was used mix and matching of elements in the proportions. ERP II helped companies maximize the benefits of their program and also provided a corrective measure in case an error was encountered. Functions can now be customized depending on functions needed by the operations. For example, a battery supply chain can have all the list of batteries being manufacture and sold by the company. When a quote is needed, there is a link to the freight forwarders that automatically computes for freight cost.

ERP II helped in the implementation of the system not only in the manufacturing setting but also in other areas like in the Human Resources, Supply Chain Management, Customer Relationship Management to name a few. To sum it up, ERP II is the evolution of ERP to a more functional system that can be customized to suit a company’s growing needs.

 

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