Enterprise resource planning software, most commonly referred to as ERP, integrates information from all corners of a business into one system in an effort to share data across departments in real time. Within this one central place, both streamlining and automating tasks are completed without human assistance.
One of the main benefits of having an ERP system is its abilities to break down the silos within a business through sharing data in once central space, which increases company communication and collaboration. Now let’s get into specifics of what makes up an ERP system, which are its modules.
What Are ERP Modules?
Within an ERP system are modules and each module focuses on one area of a business process, including finances and marketing, just to name a few. Each module has its own set of tools and serves their own unique purposes and functions. When implementing ERP software for your business, it is important to consider the types of modules that your business will need and ensure that the vendor of your choice provides them.
Here are five of the most common ERP modules that you’ll find within an ERP system, the specifics on what each module does and how it can help your business.
- Supply Chain Management
Supply chain management is the management of the flow of goods and services. It involves the movement and storage of raw materials, inventory that is a work in progress, as well as finished goods. Managing these moving parts is an essential business process that can be difficult to manage, which is why having a module in place simplifies this process.
With this module, businesses are able to make decisions based on up to date information with their ERP system. With real time visibility of your shop floor, it is easier to stop potential mistakes from happening and ensures a smooth process from production to product completion.
- Inventory Management
Having a birds eye view over your inventory is important, especially for those in manufacturing and retail industries. An inventory management module enhances customer service, which can potentially increase your inventory turns.
An inventory management has the ability to enable replenishment of products and materials without increasing a business’s investment in inventory.
- Accounting and Finance Management
A very important aspect of a business are its finances and because it acts as the heartbeat for your business, having an effective module in place to manage those finances is crucial. ERP centralizes information and workflows, and with financial data being in the midst of that, businesses will be able to manage how money moves throughout a company.
- Human Resource Management
Human resources has its hands in every department because it involves all of a company’s employees. This alone makes it a very important module to have. The human resource management module constantly collects information about employees including vacation days. If your business has a large employee size, it is very likely that maintaining this information can be difficult and runs the risk of adding duplicate data into the system. All of that can be eliminated with a module within your ERP software dedicated to human resources.
- Customer Relationship Management
Since the human resources management module stores employee information this next module focuses on the customers. The customer relationship management (CRM) module helps businesses mange customers (both current and potential), leads and the sales process.
With a CRM module, businesses can discover their top customers and target them for additional selling opportunities, track customers communication with your business as well as targeting leads. It also helps to strengthen the bond between a company and its customer base.