In the fast-paced world of modern business, Enterprise Resource Planning (ERP) systems have emerged as indispensable tools for organisations worldwide. With seamless automation of critical business processes and a centralised financial and operational data database, ERP solutions have revolutionised how companies manage their operations. These systems consist of modules tailored to support different departments, such as accounting, supply chain, and human resources, empowering them to perform at their best.
Through ERP, employees gain access to real-time, comprehensive insights into their department's performance and future planning, enabling better decision-making and identifying areas for improvement. The integration of data from diverse modules ensures data consistency and accuracy, fostering a unified view across the organisation. As a result, companies achieve streamlined processes, cost savings, and improved efficiency. Moreover, ERP's automation capabilities reduce errors, liberating employees to focus on strategic tasks.
From finance and accounting to inventory management, order management, CRM, and workforce management, ERP modules cover many essential back- and front-office functions. High-performance ERP solutions may also include features like professional services automation, human resources management, e-commerce, and marketing automation.
The Versatility of ERP System Modules
ERP system modules are the building blocks that cater to distinct business functions, empowering employees to excel in their roles. Each module serves as a data repository and process facilitator, enabling seamless execution of tasks within different departments. Just like a well-equipped toolbox, these modules are the essential tools—like screwdrivers, wrenches, and hammers—that offer specialised functionalities for various business needs.
As these modules integrate seamlessly into the ERP system, a unified and accurate source of data is maintained, even when new modules are added as the business evolves. In essence, ERP modules play a crucial role in harmonising operations, ensuring efficiency, and providing a comprehensive solution to meet diverse organisational requirements.
The Significance of ERP Modules and how they help your business
The modular nature of ERP systems has revolutionised the way businesses adapt to change, making this software an indispensable choice across industries. With ERP modules designed to cater to specific needs, organisations can customise their solution, selecting only the modules that align with their unique business model, operations, and challenges. As the organisation evolves, new ERP modules can be seamlessly integrated to address emerging needs and complexities.
The true beauty of modular ERP software lies in its adaptability, as it enables companies to expand their functionality while preserving the solid foundation already in place. Gone are the days of lengthy and disruptive ERP system replacements when requirements evolve. By partnering with an established ERP provider offering a diverse selection of modules, businesses can embrace progress without starting from scratch, ensuring a streamlined and agile journey towards success.
Decoding ERP Module Pricing: Understanding Vendor Charges
When it comes to ERP module pricing, there's no one-size-fits-all approach. Vendors offer a range of packages, and what's included can vary significantly. Typically, core financial functions are part of the base package, while supplementary features like CRM and human resources management may come at an extra cost. For industry-specific needs, some vendors bundle relevant modules, enabling manufacturers to access supply chain management or retailers to tap into commerce functionalities.
The pricing structure differs based on deployment models as well. On-premises ERP vendors often charge upfront per-user licenses, while software-as-a-service (SaaS) providers adopt a per-user, per-month, or per-year basis. In certain cases, transaction-based charges may also apply.
13 ERP Modules and Their Features
1 Finance
The finance and accounting module stands as the backbone of any ERP system, empowering businesses to grasp their current financial status and future prospects. This essential module offers a suite of features, from tracking accounts payable (AP) and accounts receivable (AR) to managing the general ledger. Additionally, it efficiently generates and archives crucial financial documents such as balance sheets, payment receipts, and tax statements.
Automating tasks associated with billing, supplier payments, cash management, and account reconciliation, the financial management module facilitates timely book closures and ensures compliance with revenue recognition standards. Beyond that, it equips financial planning and analysis teams with the necessary data to prepare key reports, including profit and loss (P&L) statements, board reports, and insightful scenario plans.
2 Procurement
The procurement module, also referred to as the purchasing module, plays a pivotal role in helping organisations secure the necessary materials or products for manufacturing and/or selling goods. This module allows companies to maintain a list of approved vendors and associate them with specific items, streamlining supplier relationship management. Moreover, it automates the process of requesting quotes, tracking, and analysing the responses received.
3 Manufacturing
While the earliest version of ERP, material requirements planning (MRP) systems, primarily catered to manufacturers, manufacturing still holds a significant role in modern ERP systems. Today, ERP solutions are equipped with advanced production management or manufacturing execution systems (MES). The manufacturing module serves as a pivotal tool for manufacturers, facilitating efficient production planning and ensuring all necessary resources, such as raw materials and machinery capacity, are available for planned production runs.
4 Inventory Management
Track item quantities and locations down to individual SKUs, ensuring accurate stock information. Seamlessly integrate with procurement for a comprehensive view of incoming inventory. Manage inventory costs efficiently, striking the right balance between stock levels and cash flow. Leverage data-driven insights to make informed decisions that boost margins and enhance inventory turn. Prevent stockouts and delays, elevating customer service and satisfaction.
5 Order Management
Track orders from receipt to delivery, ensuring smooth operations from customer placement to order fulfilment and shipping. Prevent lost orders and boost on-time delivery rates to maximise customer satisfaction while minimising unnecessary expenses for expedited shipping. Advanced order management features to aid in selecting the most cost-effective fulfilment option based on inventory and buyer location, optimising your supply chain.
6 Warehouse Management
Guide warehouse employees efficiently through all processes, from putaway to picking, packing, and shipping. Optimise labour planning based on expected order volume. Implement various picking strategies, such as batch picking, wave picking, and zone picking, for maximum efficiency. The integrated solution enables quick access to the right products, ensuring prompt shipments and improved customer satisfaction.
7 Supply Chain Management
Track the movement of supplies and goods from sub-suppliers to consumers, managing materials and product returns. Benefit from integrated modules like procurement, inventory management, manufacturing, order management, and warehouse management, ensuring seamless supply chain operations.
8 Customer Relationship Management (CRM)
Access communication history, purchase records, and more to improve customer service interactions. Manage sales leads and opportunities efficiently, enabling targeted marketing and cross-selling opportunities. Leverage customer segmentation and advanced reporting tools for strategic marketing initiatives.
9 Professional Services Automation (PSA)
Track project statuses, manage resources, and approve expenses and timesheets effortlessly. Enhance collaboration with shared document storage. Automate billing processes based on billing cycle rules, streamlining client invoicing.
10 Workforce Management Experience
Monitor attendance, hours, and employee productivity to ensure optimal performance. Simplify payroll management with automated distribution, tax deductions, and expense reimbursement. Gain valuable insights with detailed payroll expense reports and KPI analysis.
11 Human Resources Management (HRM/HCM)
Track hours, paid time off (PTO)/sick days, and benefits information. Eliminate duplicate or inaccurate data with centralised employee records, enhancing organisational efficiency and accuracy.
12 Ecommerce
Easily launch and manage online stores with user-friendly tools for adding products, updating content, and customising the website's look and feel. Integrate with other ERP applications for seamless payment, order, and inventory management, ensuring smooth transactions and timely order fulfilment.
13 Marketing Automation
Manage campaigns across digital channels, automate email sends, and segment customers for targeted messaging. Access detailed reports on campaign performance to shape future marketing strategies and increase leads, customer loyalty, and sales.
Selecting the Perfect ERP Modules for Your Business
When it comes to choosing the right ERP modules for your business, several factors come into play, including your business model, industry, and current challenges. While the specific modules may vary, some are essential for running smooth operations.
A finance and accounting module is a fundamental requirement for any organisation, ensuring financial health monitoring and timely bill payments. Similarly, CRM is indispensable for almost every business, helping manage customer relationships effectively. For companies with a considerable workforce, investing in a workforce management or HRM module streamlines payroll and employee information management.
Supply chain management is vital for product-based companies, optimising inventory, and order processes. Typically, companies start with inventory and order management modules before adding manufacturing, warehouse management, and procurement solutions.
For services businesses, a project management module can yield a quick ROI, automating billing and resource planning for projects.
While commerce and marketing automation may not be strictly considered ERP modules, they play a significant role in attracting and converting customers in the digital age. Integrating these solutions with your ERP offers seamless workflows and improved user adoption.
Don't be overwhelmed by ERP implementation. Start with the right ERP system for your current needs, and scale it as your business grows. The ideal ERP modules should cater to your present requirements while remaining scalable for future challenges and opportunities.
Frequently Asked Questions (FAQs) about ERP Modules
What are ERP modules?
ERP modules are specialised applications that handle specific business functions and processes. These modules are integrated with the ERP system's central database, creating a unified source of accurate data. This integration allows different systems, such as finance and inventory management, to seamlessly exchange information and collaborate on more complex tasks.
What is ERP, and what are its types?
ERP, which stands for enterprise resource planning, is a comprehensive platform that supports various daily business operations. It encompasses systems managing crucial processes related to finance, supply chain, human resources (HR), customer relationship management (CRM), project management, and more, all connected to the ERP.
ERP systems can be deployed through multiple delivery models, including cloud, on-premises, and hybrid. Cloud-based ERP operates on remote servers, often managed by the software vendor. On-premises ERP, on the other hand, requires local servers owned by the company. Hybrid ERP combines elements of both cloud and on-premises solutions.
What are the essential modules in any ERP system?
The selection of ERP modules depends on each company's specific requirements. However, most businesses start with a finance module, automating accounting processes, tracking financial data, and generating essential reports. Another commonly adopted module is CRM, as managing customers is essential for nearly every company.
Product-based businesses typically require modules like inventory management and order management, which are crucial for supply chain operations. On the other hand, service-based organisations often benefit from a professional services automation application to streamline project management.
Use Our ERP Requirements Checklist
This checklist will help you assess whether an ERP system meets your business needs.
