The business world has greatly enjoyed the advances in technology that the world is enjoying at the moment. These technologies have made it possible for business processes to become more centralized, move faster, and easily accessible by all of the employees of the company that are authorized to access the data.
One of the technological advances being widely used right now is the Enterprise resource planning software (ERP) systems. The ERP solution’s presence inside the company’s main system allows for the ability of the employees to speedily and accurately access data that they need for the tasks assigned to them. Centralized and accurate, the ERP software systems provide businesses like those in the manufacturing industry to literally have the correct numbers and data at the fingertips of their employees.
An enterprise resource planning or ERP systems is a centralized hub for all of the occurring numbers and data inside a business. It uses several modules that collect the data and then forwards it to the system so that the data are easily accessible at the fastest time possible. Every ERP module is built into the different departments that comprise the company.
ERP modules are usually used to support different office functions, from those in the front line up to those working at the back. These office functions range from simple to intricate such as resource management, inventory control, manufacturing, supply chain management, workforce management, and the like. Such common ERP modules are placed in the department assigned to the tasks enumerated. These modules will allow for the acquisition of business intelligence that will allow for the faster processing of data and numbers.
ERP System Modules and how they help businesses?
By plugging in the different modules into the ERP systems, gathering data and numbers from the different departments of a company, a centralized repository of all the business’ data is created. Accessible by every employee who belongs to the appropriate department and duly authorized, the employee is given the ability to provide accurate information that is needed for faster decision making.
Since the ERP modules are created and used depending on the department where it is placed, a business can choose from the different available modules. Consequently, the company can add or remove modules depending upon its needs at the time. This will allow the company versatility and choices in the ERP modules that it will use.
How Do ERP Vendors Charge for Each Module?
Most ERP vendors allow the company to choose only the modules t they will need along with the most basic modules or core financial functions needed for the proper functioning of the ERP systems. As such, the company can choose from the different available packages that the ERP vendor/s had created and customized. However, certain modules may have a higher price attached to them since they are considered some of the most important and most used modules in the ERP system.
13 ERP Modules and Their Features
In all of the available ERP modules, thirteen (13) are considered to be the most basic and the most in-demand. They are the ones that are usually purchased and installed into the company’s systems. The 13 ERP modules are the following:
- Finance Module – This is also called the finance and accounting module and is highly in demand since this module provides the company with data that will show their present financial status and the financial track of their company in the coming days. This module tracks accounts payable and receivables and manages the general ledger of the company. Important financial documents can also be created here. Another feature of this module is its ability to automate tasks such as billing, payments, and reconciliation, which are all necessary for the correct preparation of the financial documents of the company.
- Procurement Module or the Purchasing module – this module assists the procurement department in finding the raw materials that it will need by providing a list of the vendors usually used by the company as well as detailing the data related to them. Once all of the necessary preparations are ready, and a vendor has been chosen, this module helps the department to prepare purchase orders. This module can also automate tasks needed by the procurement department.
- Manufacturing Module – helps the manufacturers plan their production and ensure that all of the necessary materials are already available inside the company. It helps in the production planning of the company and provides vital information to ensure that the manufacturing process is on track.
- Inventory Management Module – This module allows the department concerned to ably and correctly control the company’s inventory and easily keep track of the contents in its inventory. It ensures that the company will spend the right amount of its finances for its inventory without having to overstock or have only a very small stock of the needed raw materials.
- Order Management Module – The order management module includes software that will track the order made by the company from the first step until the goods are delivered. It tracks and makes sure that orders made are not lost or take too long to arrive.
- Warehouse Management – this module helps the department to correctly management the company’s warehouse while maximizing its space and storage. It is usually used by businesses that have their own warehouses.
- Supply Chain Management – The module allows for the tracking of the movement of the supplies and goods that come in and go out of the company, thus ensuring that nothing is lost or damaged along the way.
- Customer Relationship Management (CRM) – this module stores every data that the company has on its present and prospective customers.
- Professional Services Automation (Service Resource Management) – This is also called the service resource management module and assists the company in planning and managing their projects.
- Workforce Management – This module is designed for businesses that have employees paid by the hour but perform in a similar manner as the Human Resources Management module.
- Human Resources Management – The HRM module provides detailed records of all employee information collected by the company and provided by the employee in the course of his work.
- Ecommerce Module – is used by companies that are interested in selling online. It provides the businesses that use it the ability to launch their business-to-business (B2B) or business-to-consumer (B2C) eCommerce websites.
- Marketing Automation Module – provides the company with the ability to manage correctly their marketing campaigns in all available channels as well as allow for the automation of emails being sent as part of its marketing campaigns.
Truly a very important technological advancement and now an essential part of every business, the enterprise resource planning ERP system is a must-have if a company wishes to always be able to have all of the correct data and numbers at a speedy manner. Decisions can be made without delays or additional costs to the business concerned.