Over the past few decades, Enterprise Resource Planning (ERP) systems have been crucial for business requirements. ERP solutions automate critical business processes and serve as a shared database that stores all financial and operational information across the company.
This data is pulled from various modules designed to assist different departments in their respective functions, such as accounting, supply chain, and human resources. All employees have access to ERP solutions that allow them to answer critical questions about the department's performance, plans, and potential areas for improvement.
The single source of information reduces data consistency and data accuracy issues. It also ensures that everyone can see the same numbers regardless of position. This allows for better decision-making, which leads to cost savings and more efficient manual processes.
ERP also automates many tasks, which reduces errors and allows employees to concentrate on strategic work. ERP software's centralization of many back- and front-office processes can sum up its value. You can customize your ERP solution with many modules.
Let's say, for example, that you find a vendor who aligns with your needs but does not have CRM functionality in its base package. Consider adding an accessory to your ERP system to enable these capabilities. ERP's modularity makes it a versatile tool that can be customized to suit different workflows.
Common ERP modules can support front- and back-office functions such as finance, accounting, procurement, manufacturing, and order management. They also manage warehouse management, supply chain management, and customer relationship management (CRM). More functionally rich solutions include professional services automation (service management), human resource management (ecommerce), and marketing automation.
What are ERP System Modules?
Each ERP module has a specific purpose and is used to support employees. Each module can be connected to the ERP system. This ensures that the ERP system has a single source for accurate data. The system can also handle new modules. The modules, which are all used for specific purposes, can be compared to the ERP system as a toolbox.
ERP system modules are often added-on to an existing base application. This means they usually come at an additional cost. Because these systems are highly customizable and configurable, adding applications to existing software via ERP implementation is relatively easy.
ERP appliances are designed to focus on key business processes. Every trait is unique, so companies don't need to add redundant functionality. Understanding the different modules available in ERP systems and how they can benefit your company is essential.
Also, it is essential to understand the functionality of your base ERP software so that you only add the required appliances. Let's talk about purchasing considerations before we go over our top modules.
What Can ERP Modules Help Businesses?
ERP's modular design allows it to adapt to changing business functions needs, which is why this software has been so popular. An organization can only purchase modules relevant to its business model, operations, and critical challenges. As the company grows, it can add ERP modules to meet new challenges or needs.
Modular ERP software allows companies to add functionality and keep the foundation intact. If the company selects an ERP provider that offers a broad range of modules, there is no need for a new ERP system. This can be a slow process.
What do ERP Vendors Charge for Each Module?
There are many options for ERP purchases. Some modules may be included with the base package, while others might cost extra. The core financial functions typically come with the base package. However, CRM or human resources management features can be extra expensive.
Some packages are packaged by industry. For example, a manufacturer might buy a package that includes supply chain management or a package that includes commerce. On-premises ERP vendors typically charge an upfront per-user license. In contrast, software-as-a-service (SaaS) vendors charge per user, per month, or yearly. There may be transaction-based fees in some cases.
Modular Pricing Considerations
When looking through the many modules of ERP, there are many things to consider, including industry, business size, and deployment.
Are They Widely Used or Industry-Specific?
Do you need tools or general capabilities that can be applied to specific industries? Your business may be focused on technology consulting. You could use tools such as customer relationship management (CRM), Business Intelligence (BI), and business analytics (BA) to monitor client data, profitability, and other KPIs. You may also own manufacturing plants and only require manufacturing tools such as material requirements planning (MRP), mobility, and quality management.
How Big is Your Company?
Are you a Fortune 500 company or a corner store? As your business grows, scalable programs can grow. A small accounting system is a good choice for startups and midsize businesses. CRM or BI tools are also helpful. Modules that satisfy multiple requirements are essential for large or mid-sized businesses with many departments.
Cloud or On-Premise
Do you prefer a cloud-based solution or on-premise solution? SaaS (or cloud) systems are accessible via the internet from a third-party server. You don't need to install any software; you can access it on any mobile device, from smartphones and tablets to laptops.
The cloud solutions can provide real-time data that allows you to stay connected to multiple supply chains and travel to other facilities. You can host software and other information on-premise. This is the best option if you are in a central business location.
Do you Need a New System or Add-Ons?
Would you consider buying a new car? Or a specific part? It depends. It depends on what you need. However, if your engine stops working, it may be cheaper to buy a new car. The same applies to enterprise software.
You'll be looking for new PLM accessories if you're a great accountant and BI tool with poor product lifecycle management (PLM). It would be best if you considered purchasing PLM add-ons.
13 ERP Modules: Their Features
1. Finance
Because it allows businesses to see their financial status and forecasts, the finance and accounting module of an ERP is essential. This module includes tracking accounts payable (AP), accounts receivables (AR) and managing the general ledger. It creates and stores critical financial documents such as balance sheets, tax statements, and payment receipts.
Financial management modules can automate billing, vendor payments, and cash management tasks. This module helps the accounting department to close the books quickly and adhere to current revenue recognition standards. It also contains the data required by financial analysis and planning employees to prepare critical reports such as board reports and profit and loss statements.
2. Procurement
The purchasing module or procurement module is a tool that helps organizations secure the products and materials they need to make or sell goods. This module allows companies to keep track of the approved vendors and link those suppliers with particular items. This helps with supplier relationship management. The module allows you to automate the request for quotes and track and analyze all of them.
The procurement module assists the purchasing department in preparing and sending purchase orders once a company accepts a quotation. The module can track the purchase order, which the seller turns into a sales order. Once the order arrives, it automatically updates inventory levels.
3. Manufacturing
Material requirements planning (MRP), the earliest ERP version, was designed for manufacturers. Today, manufacturing is still a core component of ERP. ERP systems often have a manufacturing execution system (MES) or production management. The manufacturing module assists manufacturers in planning production and ensuring they have the suitable materials and machinery to complete visibility of planned production runs.
It can be used to update the status of goods-in progress and assist companies in tracking actual output against predicted production. It can also provide a live view of the shop floor and capture information about finished goods. It can calculate the average time to make an item and then compare that amount with predicted demand to determine the best production plan.
4. Inventory Management
Inventory Management modules allow inventory control by tracking individual SKUs and item locations. This module provides a comprehensive picture of current and incoming inventory through integration with the procurement tool. This software allows businesses to manage inventory costs and ensure sufficient stock while storing only a little cash. Inventory management software can help companies compare sales trends to determine the best way to increase margins and turnover (a measure of how frequently inventory has been sold in a given period). It can prevent stock outs or delays and improve customer service.
The benefits of inventory management application can be used by businesses that do not have other supply chain management modules. It can handle sales orders, purchase orders, and shipping. This version is best suited for larger organizations that have multiple locations and need to track inventory.
5. Order Management
An order management module tracks all orders, from receipt to delivery. This module of the ERP tracks all orders from customers to warehouses, distribution centers, and retail stores and tracks their status. It also tracks when they are prepared, fulfilled, and shipped to customers. Order management modules prevent orders from getting lost and increase on-time delivery rates. This helps customers be happy and reduces unnecessary shipping costs.
Advanced order management software can help companies determine which option is most cost-effective for fulfilling orders. This could include a store, warehouse, or third-party fulfillment provider. These options are determined based on inventory availability and the location of the buyer.
6. Warehouse Management
Businesses that own their warehouses can reap the benefits of a warehouse management module. The application will guide warehouse workers through every step of the warehouse process, from picking up shipments to packing and shipping them.
This application can help companies plan labor according to their expected order volume. Warehouse management modules allow for different picking strategies, such as wave, batch, or zone picking. Some modules also provide information to help employees determine the best path.
When the warehouse management module integrates with order management and inventory management systems, employees can quickly locate the right product and have shipments sent out quickly. Customer satisfaction is increased by faster delivery.
7. Supply Chain Management
The supply chain management module tracks every step of the movement, from suppliers to manufacturers to distributors and retailers to consumers. It can also handle any returned materials or products for replacement or refund.
Supply chain management can encompass a variety of modules, such as procurement, order management, manufacturing, and warehouse management. It may also have additional functionality unavailable in the core modules.
8. Customer Relationship Management (CRM)
All information about prospects and customers is stored in the Customer Relationship Management module (CRM). This includes information about the company's communications with prospects, such as their call, email, and purchase history. Because staff can access all information when they work with customers, a CRM helps improve customer service.
Many companies also use CRM to manage their sales team leads and opportunities. CRM can monitor communication with prospects and recommend which customers should receive cross-sell or promotional offers.
Advanced CRM modules can support customer segmentation, allowing more targeted marketing campaigns Many of today's companies allow users to access their inventory management tools from any internet-capable device.
Read More: There is a difference between ERP Module and CRM Module
9. Professional Services Automation (Service Resource Management)
An organization can plan and manage projects with professional services automation (PSA), a service management module. Service-based businesses often use this module. This application allows you to track the status of your projects and manage human and capital resources. It also allows you to approve timesheets and expenses.
This module facilitates team collaboration by keeping all relevant documents in one place. The PSA module can also automatically prepare and send bills for clients based on rules related to the billing cycle.
10. Workforce Management
The workforce management module, similar to the human resource management module, is for companies with more salaried workers than hourly employees. It can track workers' attendance and hours and measure employee productivity and absenteeism.
The workforce management module could also include payroll. The payroll module automatically distributes paychecks to employees according to a schedule. It also handles expense reimbursement and deducts the necessary taxes. It can provide reports on payroll expenses, overtime hours, and other KPIs.
11. Human Resources Management
A module for human resource management (HRM), or human capital management, usually includes all of the features of a workforce management app and adds additional capabilities. The HRM module could also be called a CRM for employees. This module is viral and keeps detailed records of all employees. It also stores documents such as performance reviews, job descriptions, and offer letters. This module tracks hours worked, paid time off (PTO), sick days, and benefits information.
The HRM module stores information about every employee within the organization. This eliminates duplicates and inaccurate data that many organizations keep in different spreadsheets.
12. Ecommerce
Certain ERP vendors provide an ecommerce module for businesses wanting to sell online. This module allows companies to quickly launch an ecommerce site for business-to-business (B2B) and business-to-consumer (B2C). The best commerce software includes user-friendly tools that enable employees to add new items and update product content (item titles, descriptions, specifications, images, etc.). Change the design and appearance of the website.
All information about inventory, payment, and order data is automatically imported from the ecommerce module to the shared database when the ecommerce application integrates with other ERP applications. This ensures all transactions are added to the ledger, out-of-stock items are removed from the site, and orders ship on schedule.
13. Marketing Automation
Certain software companies have created a marketing automation module, just like ecommerce. Marketing modules manage campaigns across digital channels such as email, web, and social media. It can automate email sending based on campaign rules. It also has advanced customer segmentation capabilities that ensure customers receive only relevant messages.
Marketing automation software can be integrated with ERP systems or used separately. It provides detailed reports about campaign performance to help you plan and budget for future marketing teams and marketing campaigns. These software applications can increase leads, customer loyalty, and sales over time.
How ERP can help you build resilience and agility. This guide explains how ERP can be used to collaborate and share information, even when you are working remotely. It will help you gain momentum, improve efficiency, and reduce operational risk.
Runner-ups
You can also add functionalities and modules to your ERP system that will help you streamline your company's productivity.
- SCM: Supply Chain Management is complicated because there are many moving parts. It is beneficial to integrate this apparatus with other parts of your system. Its most common features include warehousing and transportation management, analytics, collaboration, and vendor support.
- Manufacturing: Order management, production management, and compliance are vital tools to meet your production requirements and ensure that you quickly craft and assign goods to clients and vendors.
- Professional Services Automation Software (PSA): PSA software will ensure that your service is at its best with client billing, resource allocation, project management, and project management. You can also use this ERP suite to schedule appointments.
- Distribution: Use this ERP module to track your entire supply chain, from entering a sales order to delivering the product to the client. This includes shipping and logistics, inventory forecasting, and advanced analytics.
- Product lifecycle Management (PLM): Get a complete snapshot of a product's whole lifecycle, from its initial design phase to when it is sent off to suppliers using proper PLM solutions. Unique capabilities include BOM management, computer-aided designing (CAD) tools, and reporting.
- Business Intelligence: Use BI to understand your company's performance better.
- Business Analytics: You can think of BA andBI as cake and frosting. Both provide analytical resources for your company but have unique qualities. BI analyzes past and present information to improve existing operations. BA, on the other hand, analyzes past and current data to streamline existing operations.
- Electronic Data Interchange: EDIC allows organizations to share files and other information electronically. Valid partnerships are built by sharing information with stakeholders and business partners. Its most essential accessories include testing, transformation, document management, transaction management, and management of the life cycle.
- Computerized Maintenance Management System (CMMS): A CMMS can help you manage your company's maintenance operations. It can detect parts, tools, and supplies in the business, plan work orders, and supervise various assets. It has primary requirements such as vendor management, time attendance, document administration, and key management.
How To Choose The Right ERP Modules For Your Business
Although the ERP modules that a company should invest in will depend on its business model, industry, and current obstacles, there are some modules that all businesses need to manage their operations. Every company requires an accounting and finance module to operate, monitor, and pay its bills. Software that provides basic accounting functions and financial information is essential for any business.
Though not as critical as finance and accounting, almost every company regardless of industry or whether it is product- or service-based depends on some customer, so CRM is another module that most businesses would benefit from. The workforce management module or HRM is worth considering for companies with more employees. Employers need to be able to track their employees' progress and pay them on time.
A supply chain management module is an excellent tool for any product company, including all distributors, manufacturers, and retailers. Since inventory and order management modules are essential to day-to-day operations, most organizations begin with them. Later, they might add manufacturing, warehouse management, and procurement options.
A project management module could help service businesses such as agencies, maintenance and repair firms, and consultancies. It simplifies project planning and automates time-consuming billing processes.
Although commerce and marketing automation differs from the software you would consider ERP, many businesses depend on them to convert customers and attract new ones. The internet has made it a significant driver of new business.
Many commerce and marketing automation solutions can be found from other vendors. However, ERP providers offer tighter integrations and may have a standard interface. This reduces learning curves and encourages employee adoption.
It used to be daunting to purchase and implement an ERP platform. But, by starting with an ERP system that is right for you, you can start with the foundations and expand it as your business grows. It would be best if you had an ERP module that is flexible and meets your current needs. It should also be scalable enough to meet your growth challenges.
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Last Remarks
There are numerous ERP Solutions available on the market today. This is a guideline to help you find the right ERP accessories for your business. Make sure to identify your functional requirements and browse the available ERP programs. ArionERP is an ERP software solution that is comprehensive. It offers many modules to help organizations manage their clients, employees, and administration.
Arionerp software will help you turn customers into loyal clients by automating customer journeys and personalized email campaigns. Our software provides simple-to-use tools to help you achieve high-quality and profitable business results. Arionerp develops high-quality ERP management software that is easy to use and trustworthy.
This will give your company a boost. Each one looks great on every device. Arionerp will provide an industry-specific ERP solution with incredible functionalities. We provide exceptional customer satisfaction through continuous growth and innovation. This list can be used to avoid duplicate implementation components and ensure that you spend only a little on solutions that will not help your business.
New programs are constantly being added to the ERP market. Although you won't necessarily need all the tools, it is almost certain that there are solutions that can positively impact your company. Your company's ability to combine suitable ERP modules can significantly impact your quest for market share and revenue.
