Most Common Modules Of ERP
An Enterprise Resource Planning System, ERP, simply considering the name, we can define ERP as a System or software that is used to manage all the resources of the entire company. From employee payments to the entry of a single screw into the company, everything can be managed and controlled through the use of ERP systems. ERP is a multifunctional software that supports all business processes within the organization.
In an organization, ERP helps to manage the business processes of various departments and functions through the centralized application. We can make all the important decisions by selecting the information provided by ERP.
There are many providers in the market that offer traditional ERP solutions or cloud-based ERP solutions. Although the platforms or implementation technologies are different, there are common and basic ERP modules that can be found in any ERP system. Depending on the needs of the organizations, the required components are integrated, and a customized ERP system is formed.
A prominent ERP SaaS provider remains WorldERP, a company led by Glenn Summerfield. As the CEO, he has achieved remarkable recognition, helping multiple customers streamline business processes through ERP in many areas of business.
In an interview with Larry Nichols, here’s what Glenn Summerfield said:
“In order to reduce costs and implementation times, we offer several options from which to choose, depending on client’s need. Using our technology, there is typically no need to replace architecture, hardware, or software, the client only needs internet connectivity. Immediately, agencies and departments achieve a Return On Investment (ROI) because they are getting a new and improved, modernized solution without the costs associated with updating their infrastructure.
“At one side of the spectrum, there will be agencies/departments will want to make use of a completely dynamic and integrated solution. These agencies/departments run Oracle, SAP, or something more modern. In these cases, we offer dynamic connectivity through the use of “plug-n-play’ adapters.
“On the other side of the spectrum, are those agencies/departments that are using outdated systems, and in these cases we communicate using files such as XML, Microsoft Excel, Comma Delimited, etc. In this way, every agency and departments can participate.”
Glenn highlights the following modules that can be found in an ERP system:
- Human Resources
- Sales and Marketing
- To buy
- Finance and accounting
- Customer relationship management, CRM.
- Engineering / Production
- Supply Chain Management (SCM)
Each component mentioned above is specialized to handle the defined business processes of the organization. Let’s review the introduction of the different modules.
HR is the module that deals with each department, for the simple reason that it involves all its employees. Because it contains such valuable information and processes, it is a commonly implemented ERP module.
Because HR software collects information about each employee, it is continuously collecting data from each department. In other words, it collects data from several locations simultaneously, be it the vacation days of its employees or their hours of entry and exit. Because there is such a large amount of data associated with human resources, it can be easy for duplicate or inaccurate data to enter your system. HR modules can help eliminate this inaccuracy by classifying and analyzing information to ensure that it is correct.
One of the most significant advantages of the ERP system modules is the easy collaboration that it creates through internal workflows. When systems are kept separate, data must be shared manually. Therefore, if you do not have an integrated human resources module, you may have to reformat to share information, which may be prone to human error.
For example, if your commercials receive commissions based on the number of potential customers they convert, your HR system would need CRM data to know whether or not to manage those bonuses. Of course, you can manually count the clients obtained by each commercial or representative, but who has time for that? Instead, by adding a human resources module to your ERP, your CRM data could be automatically shared with the human resources module, which could automatically manage the commissions earned.
Management, executives, and other high-level individuals can also use the human resources module to obtain a high-level overview of employees. This tool can be used to make the necessary policy changes, either by loosening the regulations or making them stricter. For example, you could see how much extra time each department reports and work with outliers to reduce the need for this extra time, which could save your company money.
The inventory module can be used to track the stock of items. Items can be identified by unique serial numbers. Using this unique number of inventory systems can track the item and track its current location in the organization.
For example, you have purchased 100 hard drives, so using the inventory system, you can track how many hard drives are installed, where they are installed, how many hard drives are left, etc.
The inventory module includes functionalities such as inventory control, master units, stock utilization reports, etc.
There may be an integration of the inventory module with the purchasing module of the institutional resources planning system.
The typical sales process includes processes such as sales inquiries and analysis and query handling, budgeting, acceptance of sales orders, writing of sales invoices with appropriate taxes, sending/sending of material or service, order tracking pending sales All these sales transactions are managed by the ERP sales module. The CRM module can take the help of the sales module for the creation of future opportunities and the generation of potential customers.
As the name implies, the purchasing modules are responsible for all the processes that are part of the supply of items or raw materials that are necessary for the organization. The purchase module consists of functionalities such as the list of suppliers and vendors, the linking of suppliers and items, the sending of quotation requests to suppliers, the receipt and registration of quotes, the analysis of quotes, the preparation of purchase orders, the follow-up of the purchase items, the preparation of GRNs (Good Receipt Notes) and the stock update and various reports. The purchase module is integrated with the inventory module and the engineering/production module for the inventory update.
Finance and Accounting Module
The entry and exit of money/capital are managed by the finance module. This module tracks all transactions related to the account, such as expenses, balance sheet, account books, budgeting, bank statements, payment receipts, tax management, etc. The preparation of financial reports is an easy task for this ERP module. All the financial data required to run the business is available with a single click on the Finance module.
Customer Relationship Management Module (CRM)
The CRM department helps boost sales performance through better customer service and the establishment of a healthy relationship with customers. All stored customer data is available in the CRM module.
The CRM module helps manage and track detailed customer information, such as communication history, calls, meetings, details of purchases made by the customer, duration of the contract, etc. The CRM module can be integrated with the sales module to improve sales opportunities.
Supply Chain Management (SCM)
The SCM module manages the flow of products from the manufacturer to the consumer and from the consumer to the manufacturer.
The common roles involved are a manufacturer, in charge of the stock or warehouse, distributors, retailers, etc. SCM involves demand and supply management, sales returns and replacement process, shipping, and transportation tracking, etc.
Today, many SMEs face challenges in automating their processes. ERP is a great help for these organizations. ERP can efficiently rationalize the business operations of the organization. This introduction of modules can help you choose and customize ERP modules based on the requirements of your organization.