The first group of persons that made use of an enterprise resource planning, (ERP), software were manufacturing companies. Then it was termed Manufacturing Resource Planning. It has since evolved to Enterprise Resource Planning as other organizations began making use of it. The ERP software had more organizations using it because it expanded beyond just scheduling production processes. ERP as it is now known integrates other departments in an organization like sales, customer service and accounting. This is how it attracted more organizations to make use of it. Since the aim of every business is to make money, more organizations embraced the use of ERP software as it provides an opportunity to be more effective as well as reduce cost. ERP means every department in an organization has access to the information stored on a central database.
This reduces the amount of paperwork that should ordinarily be involved. Cost is reduced as less paper needs to be bought and salaries that would have been paid for courier services are now saved. Organizations that use ERP software like BSNL, India’s fifth largest telephony company, have seen their services improved. This effectiveness is achieved as there is a seamless integration of all the departments. When the Order department needs to make an order for instance, they do not have to waste time asking for a report from the Inventory Department. By logging into the central database, they can see how much of an inventory is left. This makes for a faster order period and ensures the smooth running of an organization. These are just a few reasons why more and more organizations use enterprise resource planning.