Understanding Enterprise Resource Planning (ERP)
Companies use ERP software to manage and integrate their core business processes. ERP software can be crucial for businesses, combining all the processes needed to run an organization into one system.
ERP systems integrate many functions, including inventory management, planning, sales, marketing, finance, and HR. A large enterprise's ERP system is like the glue that binds all the computer systems together. Every department uses a system that is optimized for its specific tasks. Each department uses ERP. All designs can be accessed through one application.
What Does It Do?
ERP software allows departments to communicate and share information more effectively. Data is collected about the different departments' activities. It then makes the information available to all departments within the organization.
ERP software helps companies become more self-aware by connecting production, finance, distribution, and human resources management data.
ERP software can help reduce costs through the elimination of duplicate technologies and incompatible technology. The process integrates several systems into one, such as inventory control, accounts payable, customer databases, order monitoring, and orders.
Understand Sales Management with ERP
A business serious about its growth will implement intelligent strategies in marketing and sales. A robust, integrated ERP system is the most effective and fastest way to do this. These activities are time-consuming, monotonous, and often repetitive. They can easily be automated using an ERP.
Sales management software can update your total distribution and sales functions. This software performs many functions: it can place orders, create new items, schedule and modify existing items, send estimates and quotations to clients, do copying and shipping, etc.
Sales and Distribution Management is also responsible for creating new sales channels and maximizing the efficiency of existing distribution channels to maximize profits. They can identify areas for improvement and plan how they will improve. You can save time and avoid data entry by automating your ERP. It also initiates delivery in a timely fashion.
ERP Software To Improve Sales
ERP systems can eliminate waste, manage inventories, control manufacturing processes and perform other back-office functions. They are vital for optimizing the business. Some businesses must realize that ERP systems can boost sales and marketing practices.
ERP mapping is a way for innovative companies to become more business-savvy. Businesses are strategically using ERP systems to improve their marketing and sales. Look at how ERP systems can strengthen the front-office operation.
What Are The Main Activities In Sales And Marketing?
Sales and Marketing modules provide functionalities for every stage, from prospecting to tracking orders, dispatching orders, issuing invoices, and accepting payments. The Sales and Marketing Module in ERP has the following core functions:
- Sales order
- Order Scheduling
- Shipment
- Tracking invoices
- Sales returns
The following functions are also available for recording:
- Automating employee tasks such as customer visits, expense tracking, and other activities.
- Set marketing goals for your employees.
- Employee collaboration with business partners and franchisees.
- After dispatch, customers can pay for their goods.
- Follow up with customers on payments and invoices.
- Order tracking and the reasons behind lost orders.
- Prepare detailed reports on sales and marketing activity, such as sales trends over different periods. Analyze the data to forecast sales.
What is an ERP Sales Module?
Close deals are the responsibility of your sales team. It isn't easy to stay organized when your sales team moves around the country or continent. Your team must have the support and tools they need to be successful.
Arion ERP is integrated and saves you time by eliminating the need for duplicate data. Arion ERP has many sales ERP features that make managing sales more convenient. A customized dashboard is available to track customer data, leads, and opportunities. A simple tool allows you to create marketing campaigns and mass emails.
ERP sales module includes order placement, schedule, billing, shipping, and billing. This module is also useful for sales planning. Sales planning determines product sales to meet the plan. Most ERP systems offer ERP modules for sales. This module also works with CRM systems. It also interacts with CRM systems.
This module is also responsible for marketing and distribution. SAP's Logistics module includes the Sales and Distribution modules. ERP sales modules are integrated with online stores. Many ERP vendors offer an online store as part of the sales module.
ERP Marketing module with CRP support:
- Lead generation.
- Direct mailing campaigns
- Marketing works.
- You can schedule your promotional campaign using this tool.
What is the Process for Processing a Purchase Order?
Here are the steps for processing a sales order.
- A customer requests a quote from the vendor.
- After receiving the request from the client, the seller creates and emails the quote.
- The customer will generate a purchase order and forward it to the vendor if the quote is affordable and reasonable.
- The seller creates a sale order using the details in the order. This sales order is then sent to the client to verify the conditions of the sale.
- The seller will deliver the ordered product or service.
- The seller creates the invoice using the order and then sends it to the customer.
- The customer pays the invoice amount within the specified period.
Order Processing with ERP
The ERP Sales Module helps you to process sales orders automatically:
- When a sales order is generated, the first step in resource allocation involves obtaining raw materials.
- After the production department receives the order, it will be sent to the packing department. The sales order is then sent to the packaging department after assembling the products.
- When the products ready for dispatch are ordered, an automated invoice will be created. This includes tax and shipping charges.
The ERP module automates all these steps. This allows all departments to monitor sales orders in real-time and plan their schedules accordingly.
Use ERP Data to Improve Sales and Marketing
Modern ERP software offers a vast amount of information that can be used for developing sales and marketing strategies (specifically in pricing and customer service). Most companies have yet to use their software for front-office functions.
Purchases from channels that are inbound generate very little profit. Many businesses leading the way don't wait for demand but ask their ERP system how they can create new businesses. Here is an example. A manufacturer looks at the system and discovers that the same customer placed orders every three months for the last year. This means that the manufacturer must plan for when this customer next places an order. This customer has not yet placed an order.
The sales team will be able to use this data and note past orders. Marketing will know when and how to reach out to returning customers. This reduces the chances of customers making a different purchase. Sales teams can structure attractive prices to the consumer, influencing their decision. ERP software can be a powerful tool to increase sales.
What Should You Do?
Many companies still have to create a plan to enable front-office employees to access ERP data. Some marketing and sales staff might need remote access to the ERP system or may be required to use an old legacy system with limited data. Some firms justify these hurdles, but they can be easily avoided to increase sales and marketing.
Even when ERP data is available, sales executives focus on the marketplace. The real proof is within your company. Sales executives should use the ERP to enhance their relationship with clients, which will contribute to the majority of the firm's revenue.
Data can be used to improve market share. Included are account histories, demand analytics, seasonal trends, and non-conformance in marketing. Positioning, distribution, public relations, and pricing will be carefully crafted to grab the market.
ERP data allows for pricing products in new segments and structuring others to meet existing customer needs. When integrated marketing and ERP are integrated, forecasts can directly link to production. Operation managers will be able to plan better and predict capacity.
Pricing Strategies
The ERP variances can be a good way to measure market elasticity. The sales team can then set price floor levels. It allows the salesperson more flexibility in setting prices depending on individual customer circumstances.
The company can also maintain its competitiveness by increasing prices. The company can negotiate more effectively with this added benefit. Pricing policy helps sales understand customer needs and reflects their mission.
ERP data is used to generate new pricing options for every case. ERP can be configured to increase revenue for modern businesses. This encourages businesses to improve vendor-client relationships and product accessibility. It gives them an edge in the market. The perceived value can then be used to increase margins or prices.
ERP is a pricing strategy that has gained popularity in modern times. To respond to market changes, users should have remote access to inventory data, inventory level shipping information, and compliance certificates.
Salespeople can place orders in real time using this type of functionality. Access to account information encourages salespeople to suggest products, services, and warranties. ERPs allow for real-time approval of contracts to sign the next day.
ERP Benefits for Sales
The following are ERP sales benefits.
Better Sales Performance
What can businesses do to best use this wide range of features? which provide real-time information, valuable tools to gain competitive edge in order to enhance customer service with business intelligence to meet customer demands as well as give divine customer experience at same time fulfilling business requirements with smoothening business operations.
The best way to achieve this is through integration between CRM and ERP. Sales and marketing can collaborate more quickly on nurturing campaigns if CRM and ERP have been integrated.
Also, they can automate the process of reordering and perform other important functions. Sales and marketing teams can easily access ERP data to create effective strategies. The sales and marketing team can also generate more revenue with fewer customers.
Arion ERP is our integrated solution that connects Infor ERP with Microsoft Dynamics 365 to create a more efficient and transparent enterprise. Arion ERP is a certified partner of Microsoft Dynamics 365. We are now one of the top enterprise software specialists helping companies boost their sales.
Do you want to learn how ERP can be integrated or implemented into your company for improved sales and marketing? Contact an ERP development company that is efficient!
All your sales information will be centralized in the CRM. You can now manage all your leads, customers, sales opportunities, and communications in one system. No more missed deals due to missing information.
Information well-documented about a customer or lead can also help build trust and improve communication. This can improve the chances of closing a deal with a lead or client or to upsell or upsell an existing customer. Your team will be more profitable if you have a better-organized sales team.
Increase Customer Satisfaction
A CRM is not only useful for potential customers. It can be used to manage relationships with current customers. You will have more information about your customers and better maintain a relationship with them. You will be able to quickly answer customer questions about current orders and provide better customer service. To ensure customer loyalty and satisfaction, building and supporting relationships with customers is crucial. You will see a rise in sales.
Read More: ERP For Sales Has A Positive Effect On Business Operations
The Core Features of an ERP Sales Module
Not only are customers and sales at the core of a business but so too is ERP software. Orders, which put pressure on businesses, are linked to cash flow, which keeps them going. Although every company has different sales needs, certain features should be included in an ERP's sales module.
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Customers Database
You do business with this entity, whether an individual or a business. ERPs allow you to organize customers in the ERP system according to your needs, for example, by location or product. Advanced features are prospecting tools and sales funnels, which you normally find in CRM.
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Multi-Tiered Orders
One customer can order several products. Imagine a baby product company that makes toys, pacifiers, and booties. They also make clothes, cloth diapers, clothing, etc. Retailers may order different quantities of products, such as 100 nappies, 400 pacifiers, and 500 clothes.
The order form is divided into columns that include the product description, price, quantity, and more. They can be divided into lines with different delivery dates and quantities or the date requested by the client.
The customer may want the pacifier boxes delivered before the rest of the products because they're urgently required in his shop. ERP can support this type of arrangement if configured correctly. The system can define the date as either a date of shipment or delivery, depending on the time it takes to get there.
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Quotes
The quotes in the ERP sales module work like orders but without a delivery agreement. Quotes are valid for some time - the date is usually mentioned. Once you have settled after negotiation, the ERP will allow you to convert your quote into an order.
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Sales Forecast
It is the demand or sales expected in the future. ERP software employs a variety of statistical methods to forecast future sales. These include historical data on sales, trends and seasonality, market conditions, etc. Forecasting sales help businesses order raw materials and plan production to meet future demand.
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Maximum Credit Limit
Many businesses have credit limits set for customers. The ERP software can alert you if a customer's credit limit is exceeded. This customer can only place an order after paying for the previous order. It protects your interests as a business and prevents unpaid orders.
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Backlog
A reliable ERP must have a database of all open orders organized by the delivery due dates. Production or acquisition is likely underway for orders arriving in the next six months. Still, there are no plans to take action at the moment. The production module and the quality control module should also be integrated. This makes decision-making easier.
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Sales Territories
This is not a must-have feature, but it's a nice one. ERP software allows you to break sales down by region and executive. A particular executive can be assigned to all the sales activities within a certain region. This includes bookings, orders, and backlogs.
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Sales Returns
Returns can be made for many reasons, including defects, issues with quality, or mistakes like placing duplicate orders. It is possible to have data duplicated, to make mistakes, or to be confused if you don't use a system that tracks and records returns. A robust ERP module should include a system for accounting sales returns.
Use ERP to Manage Sales
Here are the main benefits of Sales Management:
- Integration of business processes.
- Improved decision-making.
- Unified Reporting System.
- Customer management.
- Information in real-time.
- Forecasting.
- Simple implementation.
- Savings on your money.
- Unified reports dashboard.
- Inventory management is essential for efficient inventory management and supply chain management with valuable insights to achieve business goals and business growth.
What Is The Role Of ERP In Sales And Distribution?
- The main goal for sales and distribution is to increase productivity and profit. You will be able to serve your customers better and improve response times with ERP software.
- The ERP allows the sales team to have all the necessary information viewed in one central place. This helps with the tracking, management, and monitoring at every step in the sale process.
- ERP automates many activities, including scheduling customer appointments, assessing competitors, and following up. This helps boost productivity and performance.
- A sales module that is efficient will improve collaboration between sales teams. This allows them to achieve better results and productivity.
- A sales management system can improve sales and update and maintain records, such as invoices, contracts, and agreements. It also helps businesses manage their accounts. It gives businesses a comprehensive view of the entire process, including opportunities for upselling and cross-selling. It helps businesses to tighten up their sales department.
- This dashboard centralizes all data into a single, unified view. It delivers accurate real-time data that allows for informed decision-making.
- Data and analytics can help predict future product demand so that you won't miss out on sales opportunities.
- You can help your sales staff to remain competitive by enhancing the efficiency of the distribution and sales process.
- Integrating the software solution with functions such as marketing, accounting, human resources, payroll, finance, production, and others is easy.
This software is useful for scheduling, monitoring, and planning contact. It helps improve performance by sending notifications about current opportunities and activities in one location. It helps avoid obstacles during sales activity before they turn into a problem.
The ERP module for sales management maintains a record of past and present transactions, including the goods and services provided to customers. The importance of a sales management module is evident.
Profits of Sales Function
Sales can also benefit greatly from the inclusion of manufacturing in the equation. ERP software can perform the same tasks as standalone sales programs or even more. The ERP solution provides easy access to sales data and keeps track of the entire sales process.
It can also lead to shorter lead times, fewer manufacturing issues, improved productivity, and increased efficiency. In turn, this can improve customer conversion and retention. Detailed records can be maintained of all communications with customers and prospects, as well as transactional information such as payment terms, sales history, delivery requests, etc. Easy to maintain. You can improve customer service and sales management with ERP.
You can reduce the costs of marketing and sales. You can improve your decision-making by integrating functions and data into a single system accessible to all employees. Information that is siloed can result in redundant data or confusion. With a central system, all parties are on the same page.
A powerful ERP system with a robust ERP sales module will benefit your business in countless ways. You can keep up with the competition by automating repetitive activities and streamlining your sales process.
ERP Solutions Providers
Arion ERP initially provided a relational database integrated with ERP before expanding into the enterprise market. This was in the early 2000s. Arion ERP, which originally provided an SAP ERP database, entered the enterprise market in the early 2000s.
Cloud-based ERP is gaining in popularity. Upstarts are challenging traditional ERP leaders such as Bizowie and Workwise.
Wrap-Up
ERP integrates business processes into one integrated tool. With a better view, companies can better plan and allocate resources. Without ERP, companies tend to operate in isolation. Every department has its own ERP system.
ERP systems promote the exchange of knowledge and information within an organization. The systems are also integrated to increase productivity, efficiency, and synergy among teams and departments. If a company cannot adapt its culture to the new ERP, it will be counterproductive to implement one.
