Basic
Modules of ERP System
Enterprise
Resource Planning System(ERP), just by considering name we can simply define ERP
as System or software that used to manage all the resources of whole
enterprise. Right from employee payments to single screw coming into the
enterprise , everything can be managed & tracked by using ERP
Systems. ERP is a cross functional software that supports all the business
processes within the organization.
In
organization , ERP helps to manage business processes of various departments
& functions through centralized application. We can make all the
major decisions by screening the information provided by ERP.
There are
many vendors in market which are providing traditional ERP solutions or Cloud based ERP solutions.
Though implementation platforms or technologies are different, there are common
& basic modules of ERP which can be found in any ERP System. Depending on
organizations need required components are integrated & customized ERP
system is formed. All the below mentioned modules can be found in any ERP
system:
- Human Resource
- Inventory
- Sales & Marketing
- Purchase
- Finance & Accounting
- Customer Relationship Management(CRM)
- Engineering/ Production
- Supply Chain Management (SCM)
Each
component mentioned above is specialized to handle defined business processes
of organization. Let us go through the introduction of the various modules.
Human
Resource Module(HR):
Human
Resource module helps to HR team for efficient management of human resources.
HR module helps to manage employee information, track employee records like
performance reviews, designations, job descriptions, skill matrix, time &
attendance tracking. One of the important sub module in HR module is Payroll
System which helps to manage salaries, payment repots etc. It can also
includes Travel Expenses & Reimbursement tracking. Employee Training
tracking can also managed by ERP.
Inventory
Module:
Inventory
module can be used to track the stock of items. Items can be identified by
unique serial numbers. Using that unique numbers inventory system can keep
track of item and trace its current location in organization.
e.g. you
have purchased 100 hard disk , so using inventory system you can track how many
hard disks are installed , where they are installed, how many hard disks are
remaining etc.
Inventory
module includes functionalities like inventory control, master units , stock
utilization reporting etc.
There may
be integration of inventory module with purchase module of ERP.
Sales
Module :
Typical
sales process includes processes like Sales queries & enquiry analysis
& handling, quotation drafting, accepting sales orders, drafting sales
invoices with proper taxation, dispatch/Shipment of material or service,
tracking pending sales order . All these sales transactions are managed by
sales module of ERP. CRM module can take help of Sales module for future
opportunity creation & lead generation.
Purchase
Module:
As name
indicates, purchase modules take care of all the processes that are part of
procurement of items or raw materials that are required for
organization. Purchase module consist of functionalities like
supplier/vendor listing, supplier & item linking, sending quotation request
to vendors, receiving & recording quotations, analysis of quotations,
preparing purchase orders, tracking the purchase items, preparing GRNs(Good
Receipt Notes) & updating stocks & various reports . Purchase module is
integrated with Inventory module & Engineering/production module for
updating of stocks.
Finance
& Accounting module:
Whole
inflow & outflow of money/capital is managed by finance module. This module
keeps track of all account related transactions like expenditures,
Balance sheet, account ledgers, budgeting, bank statements ,payment
receipts, tax management etc. Financial reporting is easy task for this module
of ERP. Any Financial data that is required for running business is
available on one click in Finance module.
Customer
Relationship Management (CRM) module:
CRM
department is helps to boost the sales performance through better
customer service & establishing the healthy relationship with customers.
All the stored details of customer is available in CRM module.
CRM module
helps to manage & track detailed information of the customer like communication
history ,calls, meetings, details of purchases made by customer, contract
duration etc. CRM module can be integrated with Sales module to enhance sales
opportunities.
Engineering
/ Production module:
Production
module is great help for manufacturing industry for delivering product.
This module
consist of functionalities like production planning, machine scheduling, raw
material usage,(Bill of material)preparation, track daily production progress
production forecasting & actual production reporting.
Supply
Chain Management (SCM):
SCM module
manages the flow of product items from manufacturer to consumer & consumer
to manufacturer.
Common
roles involved are manufacturer, Super Stockiest, Stockiest, distributors,
retailers etc. SCM involves demand & supply management, sales returns &
replacing process, shipping & transportation tracking etc.
Today many
SMBs face challenges in their process automation. ERP is the great help for
such organizations. ERP can efficiently streamline the business operations of
organization. Above introduction of modules can help you to choose &
customize the ERP modules depending on your organizations requirements.
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