Essay on Enterprise Resource Planning

ERP can be defined as an integrated system where management gets in touch with day to day running of operations. ERP is mostly associated with technology which creates software to run an integrated system (Jacobs & Whybark 2000). This paper analyses the importance of ERP and MRP and how they affect the manufacturing and the service industry. General Motors is an example of a manufacturing company that is increasingly improved by the application of enterprise resource planning. ERP is essential in the manufacturing as it ensures the smooth running of operations and the proper organisation of resources in the management. ERP has assured a high standard of customer service cutting the cost involved in marketing and thus improved communication. Accounting data is secure by the use of ERP integrated software.