What does ERP mean?
Enterprise Resource Planning (ERP) is the integrated business management software that combines all the processes of a company in a single system. ERP integrates different systems of an enterprise in an effective way. It enables companies to access different systems with one user interface, one database, and one application.
ERP manages the business processes and covers the functional areas of an enterprise such as, human resources, marketing, finance & accounting, inventory, production, and supply chain operations. With the ERP system, the companies can gather, store and manage their data with ease.
Now, companies no longer have to rely on various systems for their functioning, thanks to ERP.
For a better understanding, let's dig deeper to gain more information about ERP.
Features of ERP
Some of the important features of ERP are:
• ERP enhances the performance of an enterprise by integrating all the essential processes in a unified manner.
• ERP eliminates many problems faced by an organization such as, cash management, customer services, product planning problems, and many more.
• It organizes different systems of different departments across the companies.
• ERP provides a complete management solution for the companies.
• ERP allows a company to manage lists of the products and material the company sells, the data of all the employees working, and also helps maintain the list of all the customers and vendors.
• ERP promises only one user interface for the entire organization.
• ERP provides various business tools such as, executive information system, decision support system, easy working system, etc.
Modules of ERP
ERP modules provide diverse functions and purposes for companies. Companies require different types of ERP modules according to their needs. So, before implementing any module, it is necessary for companies to make sure that vendors can meet their requirements. ERP modules manage the business processes in an efficient manner.
Now, let's have a look at some of the modules of ERP
Human Resource module
Human resource is a commonly used ERP module. This module contains information of all the employees, starting from the time of their recruitment to retirement. It stores employees' data such as, working hours, vacations, leaves, attendance, etc. The most important function of this module is to ensure that the right employee is hired for a particular job.
Moreover, it collects information from other departments of a company and deals with them. Human resource module also manages payroll system and performs various activities like, issuing paychecks, increment details, payment management, and many more.
Finance module
The management of cash flow is one of the major concerns for a company. This is exactly what this module does. It keeps a record of the cash flowing through a company. Finances are like a fuel for a business, so managing them is essential.
This module integrates financial information and provides the complete data of a company revenue and expenditure. It gives access to a company to know about its performance and financial status.
Customer Relationship Management (CRM) module
With a CRM module, it is easy to track a customer's details and to find out which customer can be profitable. It deals with existing customers and also acquires new customers.
It aims to build a good relationship with customers. A CRM module helps increase the customer satisfaction by providing them what they need. It proves to be beneficial for improving productivity, enhancing business sales, and eventually the growth of business.
Supply Chain Management (SCM) module
A SCM module eases the process of tracking the movement of raw materials and their transformation into fully furnished products. It manages the flow of products and services, which starts from production to the end of their consumption.
It helps a company check production, distribution, and shipment of products. It ensures companies about the efficiency of their supply chain and provides a cost-effective solution.
Sales and Marketing module
This ERP module works in close proximity with a CRM module. It integrates the process of building a better relationship with customers while trying to get business out of them. A sales and marketing module follows up with the customers and prioritizes their preferences. It effectively manages and stores a customer's data for future references, and also creates a good customer base. It allows sales and marketing representatives to access the customers' data for designing, evaluating offers and communications.
Inventory module
The maintenance of stocks is crucial for companies. With this module, a company can keep a record of how many products are manufactured and distributed, and how many are left. It also deals with supply chain management (SCM) module to check the number of products supplied.
An inventory module enables the workers to keep a count of stocks and allows them to manufacture products according to the needs of a company. It helps manage stocks and eliminates the chances of product wastage.
ERP Vendors
A few examples of ERP vendors are:
Oracle
Oracle is a type of generalist ERP. It is a cloud ERP solution which gives access to companies to envision real-time information. It automates business processes and provides appropriate solutions to the companies based on their requirements.
Netsuite
Netsuite is a cloud ERP solution for mid-sized and large enterprises and is offered as a SaaS (software-as-a-service). It integrates various modules such as CRM, SCM, human resource, finance, marketing, inventory, etc., and also provides a real-time data visibility to companies.
Microsoft Dynamics
Microsoft Dynamics is a type of vertical ERP provided by Microsoft and it's industry specific. This is a complete business management software. It focuses on the construction and distribution of products in the market.
Odoo
Odoo is an open source ERP solution that provides flexibility to a company to construct and then integrates their apps into the ERP. It also provides a lot of modules to assist companies with their data management. With Odoo, usability and user adoption also increases.
PeopleSoft
PeopleSoft is an ERP software for small businesses. It is an on-premise ERP solution owned by Oracle. Unlike other ERP softwares that deliver a fully integrated system, Peoplesoft offers a few business processes. Such processes or features include human resource management (HRM), customer relationship management (CRM), supply chain management (SCM), and accounting functions.
Benefits of ERP
• Increases chances of getting more business by enhancing their turnover.
• Reduces processing time and thereby, increases productivity.
• Efficient and cost-effective.
• Improves accuracy of information.
• Enables an enterprise to manage its data with ease.
• Helps improve business performance.
• Establishes a better communication method between a company and its customers.
• Resolves problems and queries faced by an enterprise.
Wrap-up
Enterprise Resource Planning (ERP) unifies all the processes in an enterprise for an efficient workflow. Had it not been for the ERP system, the companies would still be relying on paper documents. But, this system has eliminated the reliance on manual work to a great extent. It is like a promise for betterment of an enterprise.
The ERP system supports a variety of functions of enterprises and helps improve their overall performance. It is a must have system for the net growth of business.
Want to take your business to new heights? Install the ERP system in your enterprise and reap the ever-loving benefits.
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