ERP MRP software systems, named for enterprise resource planning and manufacturing resource planning integrated business solutions, were developed in the late 1980s and experienced a surge of popularity during the following two decades. Before the earliest forms of ERP MRP software, many large corporations and manufacturing firms were running separate departments on individual software platforms that handled their own functions but could not intersect without complex data conversions. This meant frequent slowdowns in communication between departments with overlapping functions, like marketing and development, or human resources and payroll.  Especially in the manufacturing sector, these data sharing and communication challenges meant reduced productivity and high error rates. Shop floor efficiency requires complex scheduling and careful operations management to control shipping, billing, warehousing, assembly and other functions. Without ERP MRP software systems in place, these processes were slow and sometimes unwieldy.

ERP Manufacturing

The first early ERP MRP software systems were large infrastructures that allowed all departments to run applications and store data on a collective server architecture. But these systems were very expensive and the implementation process could sometimes last for months, or even years, and still fail as a result of poorly shared goals or ineffective employee training. Later models of ERP MRP software systems were improved and streamlined, but until the late 1990s, these systems remained far out of reach for all but the largest firms and government offices with the most flexible technology budgets and the highest tolerance for risk. 

ERP MRP Software

As the millennial transition approached, the demand for ERP MRP software systems at this high budget level reached a fever pitch as business owners rushed to free themselves from old legacy systems before the transition could cause productivity slowdowns. At that point, ERP MRP software providers and developers could afford to ignore demand at the mid-sized and small business level. But a few years after the transition occurred, demand at the high level began to slow, largely as a result of market saturation. At that point, developers realized that in order to stay competitive, they would need to turn their attention downstream and adapt ERP MRP software products to appeal to smaller business clients.

Hosting solutions and software service providers were also appearing on the market landscape during this time. These intermediary firms allowed small business clients to run ERP MRP software applications and back office management tools on a shared server architecture, which allowed clients to side step the cost of server ownership and maintenance while taking advantage of ERP MRP software innovations. Over the course of the next few years, ERP MRP software providers scaled and customized their products to meet small business needs, and many of these applications for accounting, human resources, payroll and other functions are now within the reach of smaller and more restrictive budgets. 

Written by :

tracey boxer