Different modules integrated into an ERP system
Enterprise resource planning system (ERP) is a function of different modules. Each of the modules integrated into an ERP system is responsible for a particular task. There can be hundreds of integrations for an ERP system as per the demand of business.
Different businesses demand different integrations. ERP system providers offer different modules integrated into their systems.
The primary function of an ERP system is to manage all the resources an enterprise possesses. From human resources to financial resources ERP systems manage all of them.
10 modules of an ERP system:
As discussed above, an ERP system is designed to manage an enterprise. So whatever it takes to manage a whole enterprise, ERP possesses all the resources.
These resources are also known as integrations or modules.
Here we will discuss the ten different modules an ERP system has. Each of these modules is formulated to collect, analyze and report data of its resource.
Ten modules of an ERP system:
- Human resource management
- Financial resource management
- Customer relationship management
- Inventory management
- Warehouse management
- Order management
- Supply chain management
- Marketing automation
All of the above-mentioned modules perform different tasks.
Human resource management:
Human resource management is a key module for an ERP system. It keeps a record of all the human resources in the enterprise. The record of information includes:
- Personal information
- Salary & compensation
- Performance review
All of the recorded information is analyzed by the module. Results of the analysis were then used by HR managers.
Financial resource management:
The finance module is the primary need of every ERP system.
- General ledger
- Account receivable
- Account payable
Moreover, the finance module also handles financial reporting and any reconciliation needed by the business.
It also generates reports and data that are used by managers in decision-making.
Customer relationship management:
Customer relationship management (CRM) is about customers’ relationships with the business. This module is responsible for collecting customers’ data. Engage customers through different campaigns.
Moreover, it also helps businesses search for potential clients by analyzing the collected data for trends.
The procurement module is an integration responsible for managing purchases. Either raw material or final goods.
This module helps businesses with automated orders and quotes. It helps prevent overbuying shortages.
The inventory management module is designated to manage all inventories in the business’s possession. Inventory can be
- Raw material
- Finished goods
- Goods in transit
This module keeps a record of every inventory. Moreover, the data recorded by the inventory management module is used by the sales and logistics departments.
Like every other module inventory management module can generate reports of data analysis. These reports show inventory trends that help managers with supply-chain management.
The warehouse management module manages warehouses used by the company. The warehouse can be of two types, either rented or owned. The warehouse management module manages both.
Usually, businesses owning a warehouse integrate this module into their ERP system.
The primary function of this module is to keep a record of items getting in and out of the warehousing. It can schedule delivery and procurement.
For business order management is a hectic procedure. ERP systems are designed to manage orders for the business. The order management module can manage orders a business received. It includes:
- scheduling of orders
- keeping track of order’s status
- engagement with customers
With better order management businesses increase the quality of services hence customer satisfaction.
Supply chain management:
Each of these modules is connected. The supply chain management module engages order management and inventory management.
The supply chain management module takes care of the easy and smooth distribution of products. This module is integrated for product-based businesses.
Like other modules, the supply chain management module generates reports from its data. These reports help managers understand the supply chain dynamics of the business. Moreover, it also helps them identify possible disruptions.
The manufacturing module is specially designed for manufacturing businesses. The manufacturing module can monitor the whole manufacturing process.
This module is very sophisticated, it can formulate different processes at once.
From raw material to the final product, this module monitors every process. The data collected by this module is monitored by managers to identify any errors and keep an eye on the process.
The marketing automation module helps businesses in managing their marketing efforts. It channels business’s marketing efforts across all channels including social media, the web, and other channels.
This module helps the marketing department with keeping an update on their campaigns and their results.