Intensifying competition forces companies to closely integrate with their customers and suppliers. Cooperation creates a more flexible supply chain. Yet, lead-times become shorter and demand for increased variety continues to grow. This dilemma requires a means to implement the desired integration. Enterprise Resource Planning (ERP) is that tool. ERP, a system for effectively planning and managing all the resources of an enterprise, fully utilizes the increased power available in computers today. ERP is distinguished from MRP in its use of relational databases, fourth-generation languages, integrated computer aided engineering tools, and open system portability to adjunct planning systems, finite scheduling systems, and manufacturing execution systems.
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