What are the basic modules of an ERP?

Enterprise Resource Planning, or ERP, systems are composed of tools that serve to facilitate the management of all the information that influences a company's business decisions. Each department of a company will benefit from certain features available in ERP system modules.

A purchasing department has different needs than a human resources department. The area in charge of distribution requires different functionalities than the financial department. Learn how an ERP impacts each area and the different ERP system modules.

Basic modules of an ERP

1. Human Resources (HR) Module

An ERP helps in the selection and training processes of new employees. It also tracks employee productivity. With the HR ERP module, each employee can log into the system and indicate the time worked. It also manages leave requests and vacation dates. The ERP automates the processes involved in payroll, eliminating the need for dedicated payroll staff. ERP software sends surveys and news to employees, provides an online community that promotes employee participation, and includes a company's policies and procedures.

2. Inventory Module

Both purchasing and sales processes must be completed smoothly with the intervention of the inventory management team. The features of the ERP inventory module help companies track inventory, report units and locate items within the warehouse.

The inventory module is integrated with the purchasing module.

3. Purchasing Module

This module handles all processes that are part of the procurement of items or raw materials. The purchasing module includes listing suppliers, linking suppliers and items, requesting quotations from suppliers, receiving and analyzing quotations, preparing purchase orders, tracking purchased items, updating stock and various reports. The purchasing module integrates with the inventory module and the engineering/production module for stock updates.

4. Sales module

The sales module of an ERP system includes reporting and analysis, order acceptance, invoice generation, back order tracking... The CRM module collaborates with the sales module in lead generation and creation of future opportunities.

5. Financial and accounting module

An ERP can automate, simplify and evaluate most accounting processes. What takes employees days of analysis and calculation can be accomplished in a matter of minutes using this software. An ERP can facilitate payroll, budgeting, invoicing and banking. The software can perform cost analysis to better manage cash flow and forecast future growth. Using an ERP module for invoicing reduces human error and costs.

6. Customer Relationship Management (CRM) Module

The CRM module increases sales as a result of improved customer service and customer relations. All data generated in the interactions between customer and company are recorded in the CRM module.

The CRM module helps to manage and track detailed customer information. The history of contacts, calls, meetings, details of purchases made by the customer, etc. are recorded. The CRM module integrates with the sales module to increase efficiency.

7. Production Module

Some features included in an ERP that benefit this department are production control, raw material usage, process synchronization and quality evaluation. An ERP also automatically adjusts processes based on cost analysis and forecasts.

8. Supply Chain Management (SCM)

The SCM module manages the flow of products from manufacturer to consumer and from consumer to manufacturer.

Common roles involved are manufacturer, distributors, retailers, etc. SCM involves demand and supply management, sales return and replacement process, shipping and transportation tracking, etc.

Today, many SMEs face the challenge of automating their processes. An ERP is of great help to any company, regardless of size, and to any department. ERP can efficiently streamline all the operations carried out in the company. The list of modules you have read can help you choose and customize ERP modules according to your company's needs.